In Part VI of this series, I stated that the Skaneateles Village budget for 2006-07 indicated an estimated revenue of $111,000 from town water districts.
Information that I have received indicates that the village water department will reimburse the village electric department, for metered electrical consumption, (pumping charges) in the amount of $14,726 for fiscal year '07 ending May 31. It appears that this will leave a tidy profit of nearly $100,000, which is apparently used to subsidize village water rates, which are much lower than the rates that town water customers must pay.
Now to attempt to illustrate the difference in cost between village and town water charges. To begin with, the village uses meters that record consumption in cubic foot increments, while the town uses meters that record consumption in gallons. The conversion rate is that 1 cubic foot of water is the equivalent to 7.48 gallons.
For the purpose of this comparison, I will make the assumption that two equal users, one in the village uses 750 cubic feet of water per month, and one in the town uses 5,610 gallons of water per month. Seven-hundred and fifty cubic feet times 7.48 gallons per cubic foot equals 5,610 gallons. For the purpose of this exercise, I am going to make one more assumption, and that is that these two families will use exactly the same volume of water each month for a year.
The village bills its customers on a monthly basis, and since 2004 it has used the following rates. If the total monthly consumption is 750 cubic feet, the first 350 cubic feet are billed at a flat fee of $5.50. The remaining 400 cubic feet are billed at $.0198 per cubic foot for a total of $7.92. In addition, there is an assessment of $.00345 per cubic foot of water to cover payments on the bond issued for the dedicated chlorine contact infrastructure, therefore 750 times $.00345 equals $2.59 per month. Now we must add the flat fee of $5.50 plus the extra usage fee of $7.92 and the contact fee of $2.59 for a total of $16.01 per month or $192.12 per year.
The town bills its water customers quarterly. We have determined that 750 cubic feet is the equivalent of 5,610 gallons of water. A town customer using 5,610 gallons per month would use 16,830 gallons per quarter. Using the following rates the first 5,000 gallons are billed at a flat rate of $27.45. Each additional 1,000 gallons is billed at $2.42 per thousand. That would leave 11,830 gallons to be divided by 1,000 which equals 11.83 multiplied by $2.42 for a total of $28.63. In addition, there is an assessment of 46 cents per 1,000 to cover payments on the bond issued for the dedicated chlorine contact infrastructure, therefore the total usage of 16,830 gallons must be divided by 1,000 which equals 16.83 multiplied by 46 cents for a total of $7.74. Now we must add the flat fee of $27.45 plus the extra usage fee of $28.63 and the contact fee of $7.74 for a total of $63.82 per quarter or $255.28 per year.
When I first took office in 1996, I quickly learned that the town water department was operating on a shoestring with hardly enough funds to buy necessary tools and fittings. It wasn't long before we implemented a minor increase, which allowed us to take care of our day to day needs of operating the department.
At that time, water customers were contributing $1.14 per 1,000 gallons into a fund for the payment of principal and interest on the chlorine contact bond. Village clerk Sally Sheehan maintained this fund, making deposits monthly and payments semi annually with copies of monthly statements to me.
In 2001, I felt that the balance in this fund was growing faster than necessary so I checked with Sheehan and she agreed, consequently rates were reduced to the amounts used above.
The town board approved my recommendation to create an infrastructure reserve and to deposit the 68-cent reduction in chlorine contact charges into that reserve.
Last year, the village board exercised its “Power of Water” and increased its charge for 1,000 gallons of water from $.934 to $1.10. The town board, in an effort to take the sting out of such a large increase, voted to decrease the infrastructure reserve charge from 68 cents to 61 cents per thousand gallons.
In the next issue of this series, I will report on some of the improvements that have been made using funds from this reserve and what is planned in the near future.
Bill Pavlus is a former town
supervisor for Skaneateles
Now to attempt to illustrate the difference in cost between village and town water charges. To begin with, the village uses meters that record consumption in cubic foot increments, while the town uses meters that record consumption in gallons. The conversion rate is that 1 cubic foot of water is the equivalent to 7.48 gallons.
For the purpose of this comparison, I will make the assumption that two equal users, one in the village uses 750 cubic feet of water per month, and one in the town uses 5,610 gallons of water per month. Seven-hundred and fifty cubic feet times 7.48 gallons per cubic foot equals 5,610 gallons. For the purpose of this exercise, I am going to make one more assumption, and that is that these two families will use exactly the same volume of water each month for a year.
The village bills its customers on a monthly basis, and since 2004 it has used the following rates. If the total monthly consumption is 750 cubic feet, the first 350 cubic feet are billed at a flat fee of $5.50. The remaining 400 cubic feet are billed at $.0198 per cubic foot for a total of $7.92. In addition, there is an assessment of $.00345 per cubic foot of water to cover payments on the bond issued for the dedicated chlorine contact infrastructure, therefore 750 times $.00345 equals $2.59 per month. Now we must add the flat fee of $5.50 plus the extra usage fee of $7.92 and the contact fee of $2.59 for a total of $16.01 per month or $192.12 per year.
The town bills its water customers quarterly. We have determined that 750 cubic feet is the equivalent of 5,610 gallons of water. A town customer using 5,610 gallons per month would use 16,830 gallons per quarter. Using the following rates the first 5,000 gallons are billed at a flat rate of $27.45. Each additional 1,000 gallons is billed at $2.42 per thousand. That would leave 11,830 gallons to be divided by 1,000 which equals 11.83 multiplied by $2.42 for a total of $28.63. In addition, there is an assessment of 46 cents per 1,000 to cover payments on the bond issued for the dedicated chlorine contact infrastructure, therefore the total usage of 16,830 gallons must be divided by 1,000 which equals 16.83 multiplied by 46 cents for a total of $7.74. Now we must add the flat fee of $27.45 plus the extra usage fee of $28.63 and the contact fee of $7.74 for a total of $63.82 per quarter or $255.28 per year.
When I first took office in 1996, I quickly learned that the town water department was operating on a shoestring with hardly enough funds to buy necessary tools and fittings. It wasn't long before we implemented a minor increase, which allowed us to take care of our day to day needs of operating the department.
At that time, water customers were contributing $1.14 per 1,000 gallons into a fund for the payment of principal and interest on the chlorine contact bond. Village clerk Sally Sheehan maintained this fund, making deposits monthly and payments semi annually with copies of monthly statements to me.
In 2001, I felt that the balance in this fund was growing faster than necessary so I checked with Sheehan and she agreed, consequently rates were reduced to the amounts used above.
The town board approved my recommendation to create an infrastructure reserve and to deposit the 68-cent reduction in chlorine contact charges into that reserve.
Last year, the village board exercised its “Power of Water” and increased its charge for 1,000 gallons of water from $.934 to $1.10. The town board, in an effort to take the sting out of such a large increase, voted to decrease the infrastructure reserve charge from 68 cents to 61 cents per thousand gallons.
In the next issue of this series, I will report on some of the improvements that have been made using funds from this reserve and what is planned in the near future.
Bill Pavlus is a former town
supervisor for Skaneateles
Citizen
Hot Jobs
New! Off the Menu
The Citizens' Say
Post your comment - click hereThere are No comments posted.