September 23, 2017 at 5:00 a.m.
DUNKIRK — Residents will have the opportunity to express their thoughts about a proposed water rate increase.
Monday’s Dunkirk City Council meeting will include a public hearing about a proposed 50-percent increase to the city’s water rate.
Council members decided to move forward with the 50-percent option at their Sept. 11 meeting after reviewing options presented to them by accounting firm Umbaugh and Associates in late August. The firm determined that the city is in dire need of a rate increase — none has been implemented since 2010 — to offset the cost of capital improvements that are planned over the next four years.
“What we determined was that we would need to generate, by the ending of 2021, an additional $1.1 million,” Umbaugh’s Greg Wright said at the Aug. 28 council meeting. “We are facing decreasing cash each year.”
Council decided to pursue a one-time rate increase versus a graduated increase over the course of three years in order to keep the overall impact as low as possible. The hike, if passed, will result in a 50-percent water rate increase for city residents.
The alternative would have been a 25-percent increase this year, a 20-percent increase in 2019 and a 15-percent increase in 2020. The graduated implementation would result in a 72-percent increase in total, as each increase would stack on top of the previous one.
Umbaugh’s Greg Wright said the city could also reevaluate the planning capital projects, but cautioned that choosing to forgo such work would likely result in rising maintenance costs.
Council members agreed that such a rate increase isunpleasant, but necessary.
“Every one of us setting up here pays a water bill,” said council member Lisa Street. “I don’t want to see it raise either but I don’t want to see the city not have enough money.”
Costs for scheduled improvements include $115,000 for the installation of a new water main on Elm Street and $100,000 for the purchase of a new dump truck in 2018. Plans in 2020 call for a $350,000 project to replace the Blackford Avenue water line. Clerk-treasurer Tina Elliott said the city is also continuing to work to replace lead water pipes.
According to Umbaugh, failure to raise water rates would lead to extreme budget shortfalls in 2020 and2021, and possibly prevent Dunkirk from being eligible for state and federal grants.
In addition to the one-time rate increase on the table,council has discussed the need to raise rates annually by about 3 percent in the future to avoid having to pass such a dramatic increase in the future.
Council will vote on the first reading of the increases after hearing public comment at Monday’s 7 p.m. meeting.
Monday’s Dunkirk City Council meeting will include a public hearing about a proposed 50-percent increase to the city’s water rate.
Council members decided to move forward with the 50-percent option at their Sept. 11 meeting after reviewing options presented to them by accounting firm Umbaugh and Associates in late August. The firm determined that the city is in dire need of a rate increase — none has been implemented since 2010 — to offset the cost of capital improvements that are planned over the next four years.
“What we determined was that we would need to generate, by the ending of 2021, an additional $1.1 million,” Umbaugh’s Greg Wright said at the Aug. 28 council meeting. “We are facing decreasing cash each year.”
Council decided to pursue a one-time rate increase versus a graduated increase over the course of three years in order to keep the overall impact as low as possible. The hike, if passed, will result in a 50-percent water rate increase for city residents.
The alternative would have been a 25-percent increase this year, a 20-percent increase in 2019 and a 15-percent increase in 2020. The graduated implementation would result in a 72-percent increase in total, as each increase would stack on top of the previous one.
Umbaugh’s Greg Wright said the city could also reevaluate the planning capital projects, but cautioned that choosing to forgo such work would likely result in rising maintenance costs.
Council members agreed that such a rate increase is
“
Costs for scheduled improvements include $115,000 for the installation of a new water main on Elm Street and $100,000 for the purchase of a new dump truck in 2018. Plans in 2020 call for a $350,000 project to replace the Blackford Avenue water line. Clerk-treasurer Tina Elliott said the city is also continuing to work to replace lead water pipes.
According to Umbaugh, failure to raise water rates would lead to extreme budget shortfalls in 2020 and
In addition to the one-time rate increase on the table,
Council will vote on the first reading of the increases after hearing public comment at Monday’s 7 p.m. meeting.
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