Thursday, January 3, 2008

PAWSD board approves 2008
budget, new rates

By Chuck McGuire
Staff Writer

On Dec. 11, the Pagosa Area Water and Sanitation District Board of Directors met and approved its final 2008 budget. As a result, water and wastewater rates will soon rise, while “availability-of-service” rates will likely climb, but are still subject to public scrutiny.

While the final budget varies little from a preliminary version reviewed in November, it does reveal significant increases in district income and operating expenses over the past few years. In fact, a review of the district’s three primary funds (General, Water Enterprise and Wastewater Enterprise) shows income rising at a slower pace than expenses. The question is, how do income and expenses compare with escalating costs for services to consumers?

When compared to the actual 2005 budget, the 2008 budget reflects the following increases in operating income and expenses among the three funds:

• General Fund, income up 62 percent, expenses up 78 percent.

• Water Enterprise Fund, income up 61 percent, expenses up 95 percent.

• Wastewater Enterprise Fund, income up 42 percent, expenses up 36 percent.

At a glance, the wastewater fund appears much brighter, but cash from a nearly $3 million revenue bond obtained in 2000 to cover wastewater capital improvements ran out at the end of 2007. Of course, revenue bond payments continue through 2015, forcing the district to build reserves for other planned and unforeseen capital improvement projects.

Comparing the same numbers in the 2008 budget to those in the actual 2006 budget, however, tells a slightly different story. Following, are the changes in operating income and expenses reflected among the same three funds:

• General Fund, income up 41 percent, expenses up 56 percent.

• Water Enterprise Fund, income up 35 percent, expenses up 39 percent.

• Wastewater Enterprise Fund, income up 9 percent, expenses up 21 percent.

Obviously, both comparisons show income failing to keep pace with expenses, but the 2006 comparison is particularly relevant when considering escalating costs to consumers. On Dec. 11, the district board also approved water and wastewater rate hikes, effective the May/June meter reading period. The increases mark the third time rates have gone up since May, 2006.

Following, are the new May/June 2008 water rates, how much they’ll increase over the current rates, and what percentage they’ll increase over early 2006 rates:

• $12 minimum service charge per month, per equivalent unit (single-family residence), $3 increase over current, 100-percent increase over early 2006.
• $4.20 per 1,000 gallons, up to 8,000 gallons, $1.50 increase over current, 100-percent increase over early 2006.

• $8 per 1,000 gallons, from 8,001 to 20,000 gallons, $2.85 increase over current, 88-percent increase over early 2006.

• $9.45 per 1,000 gallons, from 20,001 gallons and above, $3.35 increase over current, 82-percent increase over early 2006.

Under the new 2008 rate structure, a typical 8,000-gallon water bill will rise from $30.60 to $45.60, or approximately 50 percent over current rates and 100 percent over early 2006 rates.

The district board also approved a $3 per month rate hike for consumer wastewater services. Again, effective June 1, households will pay $23 a month, or 15 percent more than current rates and 31 percent more than in early 2006.

Where existing water or wastewater services are adjacent to undeveloped real property and readily available to its owners, the owners must pay a quarterly availability-of-service fee, until physically connecting to the systems. Such fees allow the district to cover existing debt service on the systems, until consumers connect and begin paying monthly use fees.

On Dec. 11, the district board gave preliminary approval to higher availability fees, under which landowners will pay $33.75 for water availability every three months, and $27.50 a quarter for wastewater availability. The water fee is an increase of $12, or 55 percent over the current rate, while the wastewater fee is $5.75, or 26-percent higher.

Before higher availability fees can become effective though, the district must accept public comment up to and during a public hearing, Jan. 15. Once finally approved, the new availability fees will be retroactive to Jan. 1.

While the PAWSD board adopted new water and wastewater fees in December, it will delay implementing them until the end of the winter pro rata billing period. The pro rata billing period is a five-month time frame from November through March, during which water bills are based on the district-wide average monthly use of 4,000 gallons per household, rather than actual meter readings. Heavy snow accumulations during those months typically impede access to most meters, making readings difficult, if not impossible, to obtain.

With meters typically read in April, billing adjustments are made, depending on the difference between pro rata and actual uses. In other words, those having used more than 20,000 gallons over the five-month period will see an additional charge (per 1,000 gallons) on their May statement, while those using less will receive a credit based on a similar rate.

As mentioned, the new rates will take effect in the May/June meter-reading period, and likely increases will appear on statements consumers receive in early July.

At a time when the cost of virtually everything is rising, wise water use can actually reduce monthly bills. Even with higher rates, when consumers consciously conserve, they typically pay less for drinking water. Following, are a few proven methods of reducing water waste:

• Inspect all pipes, faucets and toilets for leaks. Place a few drops of food coloring in the toilet tank and wait 15 minutes. If coloring appears in the bowl, there is a leak. Make necessary repairs immediately.

• Install low-volume toilets and showerheads, or place a one-quart (or liter) plastic container in the toilet tank to reduce the amount of water used with each flush. To anchor the bottle, fill it partially with sand or small stones.

• Turn off the tap while shaving or brushing teeth, and take shorter showers.

• Load the washing machine and automatic dishwasher to capacity before use.

• Place a pitcher of drinking water in the refrigerator to avoid running the tap.

• Landscape with low-water plants and rock gardens to reduce groomed lawn areas.

• Instead of the hose, use a broom to clean sidewalks or the driveway.

• If the local car wash recycles water, wash the car there. If not, use soap, water and a bucket, and attach a shut-off nozzle to the hose for a quick final rinse.

For additional information regarding water conservation, including booklets and brochures, or to offer input on proposed availability-of-service rate increases, district residents should attend the upcoming monthly PAWSD meeting at 7 p.m., Jan. 15, at 100 Lyn Ave. The PAWSD phone number is 731-2691, and its Web site is www.pawsd.org. Those wishing to comment, may also submit thoughts in writing or by e-mail.