by Tom Chillemi –
New rates proposed for the Urbanna water system will add $76,000 to the annual water fund reserve, said Bill Smith, town council member and water committee chair.
Urbanna’s water rates have not been raised since 2008, Smith told council during his presentation at the September 26 meeting. Council members will hold a public hearing on October 24 on the proposed water rate changes. If approved the new rates would take effect January 1, 2020.
If approved by town council, the water rate for up to 6,000 gallons for the two-month billing period will go from $28 to $39.70. Less than 6,000 gallons per two months is known as the “minimum” charge. Water use over the minimum charge would be billed at $3.69 per 1,000 gallons, a $1.09 increase.
Out of town water customers would pay $76.57 for up to 6,000 gallons, and $7.37 per 1,000 gallons over the minimum charge, a $2.17 increase.
The water committee used data collected from several sources to come up with the proposed rates, said Smith. “The committee wanted the rates to be fair and equable to all customers, but also be at a level that will maintain and sustain our system into the future,” Smith told council and about 20 audience members.
Data sources included the Virginia Rural Water Association, Draper Aden Associates and the Environmental Protection Agency.
Rates compared
The minimum water rate comparison for 6,000 gallons used in two months for similar sized towns in Virginia is $52.86. The Middlesex Water Authority, which is planning to build a water system for eastern Middlesex, is proposing a charge of $90 for those who use up to 6,000 in two months.
The “average” minimum water rate for all Virginia water systems is $39.68, which is 2 cents less than the proposed in-town rates.
The town’s water rates will be reviewed annually, said Smith.
Water sales now total about $183,000 annually, said Smith. He noted that in 2018 in-town water customers’ average usage for two months is just under 5,000 gallons and out of town customers average 7,800 gallons per two months.
Maintain and sustain
The rate increases should give the water fund an annual surplus of $136,000, said Smith. These funds would go towards maintaining the water system, which is more than 50 years old, and drilling new wells. Under a state mandate, the town must drill a new well by 2024 and a second well within 8 years of the new well becoming operational, said Smith.
The water fund reserve currently has about $200,000 in it.
Following a closed session at the September 26 meeting, council voted to authorize the town administrator to negotiate with A.H. Environmental Consultants of Newport News to map the town’s 10 miles of water lines. Mapping the system will enable the town to develop an asset management plan to maintain and sustain the water system, said Smith.
Ordinance change
Council will also be considering an ordinance change regarding multiple water users operating on a single meter. The town code prohibits more than one family or business from using the same water meter. Doing so would prevent the town from collecting the minimum bi-monthly charge for each customer.
The water committee has proposed an amendment whereby existing customers with more than one user on a meter will pay twice the minimum bi-monthly charge. This amendment would take effect on January 1, 2020.
After January 1, 2020, any new construction will be required to have a separate water meter for each dwelling or business.
