East Providence water rates will rise in November

Council approves measure upping one-time fixed charge, three-year increases for usage

By Mike Rego
Posted 5/4/17

EAST PROVIDENCE — After much consternation on the part of a couple of members, the city council at its Tuesday, May 4, meeting eventually gave its second and final approval to a resolution upping …

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East Providence water rates will rise in November

Council approves measure upping one-time fixed charge, three-year increases for usage

Posted

EAST PROVIDENCE — After much consternation on the part of a couple of members, the city council at its Tuesday, May 4, meeting eventually gave its second and final approval to a resolution upping the fixed and volumetric charges property owners pay for water consumption.

The increases take effect with the start of Fiscal Year 2017-18 on November 1. The vote does not change the city's implementation of monthly billing, which is set to begin next month, June 2017.

The fixed rate for most residential customers, those homes with a 5/8-inch meter, rises to $85 from $80. That increase at the same dollar amount remains in effect for the ensuing two years through October 31, 2020.

The usage rates would increase annually over the same three-year period. This November the rate per 100 cubic feet of water used rises to $4.35 from the current $4.05. In FY2018-19 it increases to $4.68 per then $5.03 per in FY2019-20. The rates would then be revisited for evaluation leading into the 2020-21 fiscal year.

According to the expert testimony of Christopher Woodcock, the increase for the average East Providence water customer, one who consumes some 1,500 cubic feet of water per cycle, would be about 6 cents per day and 50 cents per week or approximately $5 per quarter. Woodcock & Associates, Inc. along with Raftelis Financial Consultants recently performed a study of the city's water rates.

The council, last Tuesday and at two previous meetings on the topic, learned the increases are necessary for a handful of reasons.

The main objective of the rate hikes is to keep the water department solvent operationally. It functions regularly through monies derived solely from payments made by consumers, commonly referred to as a “revolving fund.” It receives no financial support through the city’s budget.

In addition, the increases are needed to pay off bonds taken out for a spate of repairs to the system made in recent years, including the construction of a new 6 million gallon storage tank and chlorination station at the Kent Heights site as well as pipe replacement throughout the city.

The hikes are also required to meet the parameters and timelines set forth by the state infrastructure bank, which backs loans taken by municipalities. East Providence is in the process of applying for a loan worth upwards of $2.5 million with the bank to make interior and exterior improvements to the landmark tower at the Kent Heights water facility.

City Manager Tim Chapman, who at the same meeting last week had the interim tag removed from his title by vote of the council, told the board approval of the rate increases was “critical” to securing funding for the tower project. Asked directly by Ward 3 Councilman Joe Botelho, in whose district the tower sits, if the project would go forward without the rate hikes, Mr. Chapman said flatly, “no.”

The council passed the measure by a 3-1 count. Ward 4 Councilman Brian Faria voted against the increases. Ward 2 Councilwoman Anna Sousa was absent from the May 2 proceedings.

Mr. Faria, who previously expressed reservations over the proposed increases, questioned the need for the hikes and wondered aloud if there were other means to find the monies needed to support the water department. He did so despite hearing the testimony to the contrary from outside experts who performed a rate study as well as Public Works Director Steve Coutu and Water Supervisor Jim Marvel.

Ward 1 Councilman Bobby Britto eventually backed the resolution, though he, too, called his position a "dilemma," specifically that of upping fees on residents. He noted his firm opposition to tax increases during his two previous years on the body, saying elected officials were “taxing people out of the city.”

"It pains me to vote for another tax increase in the city," Mr. Britto said.

Mr. Botelho and council president/mayor Jim Briden, the At-Large member, also voted in the affirmative. Mr. Botelho countered Mr. Britto’s assertion of people leaving the city. A realtor by profession, Mr. Botelho said the city actually doesn’t have enough housing supply to meet the demand of those wishing to move here. He added it was important to continue to improve the city’s infrastructure, specifically the Kent Heights water tower. Mr. Botelho ran for office last year, in part, with the promise of seeing planned repainting and repair of the dilapidated structure come to fruition.

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