East Providence council gives first approval to water rate increase schedule

Usage charge would rise gradually over three years, fixed fare one time

By Mike Rego
Posted 4/20/17

EAST PROVIDENCE — The city council at its meeting Tuesday night, April 18, and following a presentation made at a special workshop the week prior gave its first approval to proposed volume and …

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East Providence council gives first approval to water rate increase schedule

Usage charge would rise gradually over three years, fixed fare one time

Posted

EAST PROVIDENCE — The city council at its meeting Tuesday night, April 18, and following a presentation made at a special workshop the week prior gave its first approval to proposed volume and fixed rate water increases. The hikes would go into effect as of November 1 of this year.
The fixed rate for most residential customers, those homes with a 5/8-inch meter, would be lifted to $85 from $80. That increase would remain in effect for the ensuing two years through October 31, 2019.
The usage rates would increase annually over the same three-year period. This November the rate per 100 cubic feet of water used would rise to $4.35 from the current $4.05. In 2018 it would increase to $4.68 per then $5.03 per.
The increases are necessary to keep the water department solvent operationally and to pay off bonds taken out for a spate of repairs to the system made in recent years, including the construction at the Kent Heights site as well as pipe replacement throughout the city.
The increases are also needed because the department is self-sufficient, a “revolving fund” that does not receive monies through property taxes from the city.
The current water rates were put into place by the state-appointed Budget Commission. That schedule began in 2012 and concluded in 2014 with the current $4.05 usage and $80 fixed charges.
In explaining the need for the hikes last week, Public Works Director Steve Coutu told the council, in part, it is a requirement of the state infrastructure bank. The infrastructure bank backs the loans the city has received and plans to seek for the host of improvements made to the system, including the planned reconditioning of the landmark water tower also in Kent Heights. The bank requires a rate study and a three-year rate structure to make sure the water department can make good on its debts.
As for where the numbers came emanated, two weeks ago at the special workshop, the council received the results of rate study done by Woodcock & Associates, Inc. of Northborough, Mass., and Raftelis Financial Consultants, Inc. of Worcester.
The aforementioned increases were suggested by the two water system specialists. In total, the experts presented the city with four financial models, which also included addresses sewer charges. That matter, however, was left on the table for further study. A separate discussion and presentation on proposed changes to sewer rate charges will take place next month.
Stated that evening and reiterated last week by Water Division Supervisor Jim Marvel, the increases proposed in East Providence would take the city from having the lowest water rates in the state to roughly the middle of the pack of municipalities. When asked how the increases could be described, Mr. Marvel agreed with the sentiment of them being the “bare minimum” to keep his division’s coffers full.
Mr. Marvel said, according to current consumption data, so-called “low-end” users would see there bills rise approximately $4 per quarter. With the city soon implementing a monthly water billing cycle that would work out to about $1.33 each month. So-called “average” users would see their bills increase in the range of $5-$5.75 per quarter per annum over the three-year period.

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MIKE REGO

Mike Rego has worked at East Bay Newspapers since 2001, helping the company launch The Westport Shorelines. He soon after became a Sports Editor, spending the next 10-plus years in that role before taking over as editor of The East Providence Post in February of 2012. To contact Mike about The Post or to submit information, suggest story ideas or photo opportunities, etc. in East Providence, email mrego@eastbaymediagroup.com.