SOUTHWICK – The Board of Selectmen discussed a proposed increase to the sewer rate last night, but tabled a vote until next week.
Department of Public Works (DPW) Director Randy Brown sent a letter to the board last week outlining several options to compensate for the difference in what the sewer department generates for revenue and what it costs to operate and maintain the system.
“At this time, we recommend increasing rates to $7.65 to cover the sewer division’s yearly operation and maintenance, excluding the IMA (Inter-Municipal Sewer Payment), to minimize impacts to sewer users,” wrote Brown.
The proposed rate is a $1 increase over the current rate.
Selectwoman Tracy Cesan participated in the sewer committee’s discussions on the rate and said “we did a lot of research on this.”
The sewer committee’s analysis found that the town’s general fund pays the IMA to Westfield, which was $24,568 in FY14. The cost is not paid by the users. It also found that excluding the IMA payment, the average sewer deficit over the past five years is approximately $125,000. Unlike the water budget, the sewer budget does not include costs that are town expenses billed to the water division, such as gas and oil, office telephone, postage, administrative expenses to town, and medicare. In Fy14, these expenses totaled $82,250.
“If the sewer department is to be self-sufficient and in line with the water department, these costs should be passed along to the sewer users,” Brown stated.
Brown outlined three options for the board’s consideration, The first is the $1 increase to $7.65, which would be a $690 cost for the average homeowner. The second option is a rate of $9.50, which is an average cost of $855, and the third option is a rate of $9.90, or $890 for the average user.
Cesan said the first option, which was recommended by Brown, is the “happy medium” option.
Selectman Joseph Deedy asked when the last increase took place. Cesan said there were several years of 50-cent increases that ended in 2012.
“So if they didn’t stop the incremental increase, we’d be at a dollar now anyway,” said Deedy.
Both Deedy and Cesan said they hoped that eventually the sewer department would run like the water division and the costs to operate and maintain the sewer system would be covered by the fees.
Board Chairman Russell Fox asked if the board wanted to table the vote. Although Deedy and Cesan said they were prepared to vote Monday, they agreed to table so Fox could “digest” the recommendation.
The new rate would take affect in FY2015.
