Newport
Under town plans, water rates would increase 20 percent in 2019 and 43 percent the following year. Sewer rates would rise 30 percent in the first year, then 40 percent in 2020 and 50 percent by 2021.
Town officials said the rate hikes are needed to cover operating expenses and pay for capital projects, including upgrades to the wastewater treatment plant that are federally mandated to be completed by March 2021.
Newport Finance Director Paul Brown told the roughly 20 people at the hearing that a significant drop in water use, mostly by the town’s biggest water customer, Sturm, Ruger & Co., has cut into revenues.
“We need to do something or we will be in a deficit by 2021,” Brown said.
According to Brown, the gun manufacturer has decreased its water consumption from about 60 million gallons in 2014 to 20 million last year. He said the company is now using a system to recirculate a lot of water.
But some at the hearing argued that residents cannot afford the proposed increases.
A drop in water should mean lower rates, said resident Frank DeLorier, who told the Selectboard it is too expensive to live in Newport, and he has put his home up for sale.
“We use less water and you just increase the rates,” DeLorier said. “You folks throw out rate increases like it is an everyday thing.”
“Less water is the problem,” Brown replied, telling residents that many fixed costs do not decrease with less use.
Water use in Newport has fallen to about 100 million gallons a year, which is the lowest level in the last 21 years, Brown said, referring to a chart he showed during Monday’s hearing. By comparison, annual usage was at 180 million gallons in 2000, he said.
“We can’t turn off 40 percent of the infrastructure,” Selectboard Chairman Jeff Kessler said. “It must be maintained.”
Residents Kristy and Ray Kibbey, owners of two mobile home parks in town, said the increases will be tough on their tenants.
“I can’t go back and tell my tenants we are raising your rent,” Kristy Kibbey said.
Kibbey called the timing of the proposed increases, which would appear on the November utility bill, “horrible” because of tax rate increases from the town and school meeting votes this spring, along with electric rate increases by Eversource.
“Had we known, I may not have voted what we voted for at Town Meeting, like a community center (design),” Kibbey said. “We feel like we are being slapped upside the head.”
Ray Kibbey said it is clear the water and sewer capital projects need to be done, but perhaps the rate increases can be phased in over a longer period of time.
“I think the only real solution is a gentler approach,” he said.
According to rates compiled every three years by the state Department of Environmental Services, the average annual water bill for a single family home in Newport is $513. That compares to $288 for Charlestown, $364 for Claremont and $404 for Lebanon.
But for sewer rates, Newport is at $627 annually, while Claremont and Lebanon are more than $700 and Charlestown stands at $430. Claremont raised its water rates in 2016 but not sewer. The DES figures are from 2015 and updated information is expected to be released this week.
Newport last raised water and sewer rates in 2009, as part of a phase-in process. Before that, there was a phased-in increase in 2000. The town has about 1,500 homes on water, Brown said.
Resident Bert Spaulding, who isn’t on either system, said the town would have been wiser to incrementally increase water rates a little each year over the last 10 years instead of waiting until the revenue was needed.
Spaulding also urged the town to take a closer look at reducing expenses with the sharp drop in demand.
“Look at lowering cost rather than just passing it on,” Spaulding said. “Run it like a business.”
Selectboard member John Hooper said the proposed increases are simply options at this point and nothing is final, but the town will need to do something to make up for the lost revenue.
“Where do we go from here? What makes the most sense?” Hooper asked.
The Selectboard decided to continue the hearing on rates to July 16 because of the likelihood many residents are on vacation this week.
Patrick O’Grady can be reached at pogclmt@gmail.com.
