EMMITSBURG, Md. – Town staff is citing depreciation
of value as the primary reason rates were raised in December
for customers of Emmitsburg water and sewer services.
Mayor
James E. Hoover had asked town staff to develop rate increases
that addressed the depreciation issue and also had the least
impact on those who used the least water and sewer services.
Town
Manager David Haller told the board of commissioners at
their Dec. 4 meeting, “During the town’s most
recent budget audit we were informed that the depreciation
on the water and sanitary sewer systems has risen to approximately
$404,000 per year.”
Prior
to this finding he said the town has been funding for the
systems’ depreciation at a rate of $310,000 per year.
Haller
warned as the board prepared to consider adopting the new
rates, “If the town were to decide to not fully fund
the system depreciation, it would be reverting to a time
and a means of operation that allowed for these systems
to so badly deteriorate … the same means of operation
that has resulted in an MDE consent order.”
Haller
explained that the depreciation factor is generated by the
number of additions to the system and increases in construction
and replacement costs.
He
told the board that by using a growth and inflation rate
of three percent annually, “We will fall approximately
$675,000 short of fully funding the system depreciation
over the next five years if we continue with the present
rate structure.”
The
new rates ultimately approved by the board, with Commissioner
William B. O’Neil Jr. abstaining, will spread the
depreciation cost over a five-year period. O’Neil
could not be reached for comment on the reason for his abstention.
Based
on “confirmed” but inaccurate information, The
Dispatch reported incorrect third quarter (March 2007) increases
for water and sewer service in the Dec. 7 issue of the paper.
The correct combined rate increases for water and sewer
will be:
Up
to 10,000 gallon-per-quarter users: $5 per quarter increase.
10,001 to 20,000 GPQ users: up to $37 per quarter increase.
20,001 to 30,000 GPQ users: up to $64 per quarter increase.
The
average user generally consumes 14,305 gallons per quarter,
which would represent a $32 increase per quarter.
