Newport
After listening to more objections at a second public hearing on Monday night on the increases suggested by Finance Director Paul Brown, the Selectboard unanimously voted to increase water rates by 10 percent and sewer rates by 15 percent, saying it would further study additional increases in the coming months.
“It will ensure neither system goes bankrupt until we figure out a better approach,” Selectboard Vice Chairman Todd Fratzel said.
The increases, which will be reflected in the semiannual bill in November, are far less than the recommendations from Brown, who said his increases would avoid a deficit in three years in working capital for water and sewer, both of which have large capital projects coming up.
Under Brown’s recommendations, water rates would increase 20 percent next year and 43 percent the year after. For sewer, Brown’s proposal to the Selectboard called for increases of 30 percent in 2019, 40 percent in 2020 and 50 percent in 2021.
In a slide presentation made to the board, Brown said the increases would raise the combined water and sewer bill for a family of four using 47,000 gallons a year from an average of $772 this year to almost $1,500 in 2021.
Brown repeated what he said in the first hearing: that a sharp reduction in water use the last few years — primarily by gunmaker Sturm, Ruger & Co. — and strict conservation due to a drought last summer has sharply reduced revenues as people use less water.
In 2017, water use fell to its lowest level in 21 years. Resident Bert Spaulding said the usage that year should not be counted because Newport had a drought and imposed water restrictions.
“We have the same customers and same capital needs. This is our biggest problem,” Brown said about the reduced revenues. “The large reduction (in water) the last 12 months put us in more of a bind than we thought.”
The water system has about 1,600 users and sewer has about 1,400, Brown said before the meeting.
Several residents spoke out against the large increases and noted how it would affect them.
“These are astronomical. My paycheck does not cover that,” resident Kris Gregory said. “I’m going to have to sell my house. Tell me how I’m going to pay this?”
Abby Willets had a similar reaction.
“There is no way we can take that kind of a hit,” Willets said. “It is just not right.”
A few residents pleaded with the board to reject the substantial increases and go with a lower increase to start.
“Can you scale it down some and give us some breathing room?” resident Ed Karr said. “It is clear you have to do something, but I think you need to give it more thought.”
Others complained that the increases were being dropped on them too quickly and said if they had a year to prepare, they might be better able to handle the financial impact.
Before the hearing was closed, a few Selectboard members said they would not support Brown’s recommendation but also told the audience there will be more increases in the years ahead.
“The reality is it has to be paid,” Fratzel said. “We can try to soften the blow, but the (water) fund has to have more money. It is that simple.”
Board member John Hooper was the first to suggest a 10 percent increase for next year and then revisit the numbers later.
“I don’t think data is completely conclusive. We have more to do,” Hooper said. “I say 10 percent (for water and sewer), and wait until next year so we have some time to think about it. I expect (an increase of) 10 percent. I don’t expect 40 percent, ever.”
The increases that Brown suggested would cover operating expenses and several capital projects, including federally mandated upgrades to the wastewater treatment plant. That is a $6.2 million sewer system project that must be completed in March 2021.
On the water side, an infrastructure project spanning several streets includes a $1.27 million expense for water line replacement in 2019 and in 2021-22 a $2.14 million pump station development is scheduled.
Both systems have other capital projects and equipment purchases, as well.
Newport last raised water and sewer rates in 2009, when they phased in. Before that, there was a phased-in increase in 2000.
Patrick O’Grady can be reached at pogclmt@gmail.com.
