Portsmouth water rates are going up again

Average customer will see $57 increase next year

Posted 5/18/16

PORTSMOUTH — It’s going to cost you more for water going forward. The average residential customer who uses 60,000 gallons of water annually will pay $624.04, an increase of $57 — 9.1 percent — over fiscal 2016.

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Portsmouth water rates are going up again

Average customer will see $57 increase next year

Posted

PORTSMOUTH — It’s going to cost you more for water going forward.

The Portsmouth Water and Fire District has released its quarterly water rates for fiscal year 2017, which began May 1. The new rates are $7.28 for the first 5,000 gallons and $10.71 for all water use over 5,000 gallons in the quarter. 

The average residential customer who uses 60,000 gallons of water annually will pay $624.04, an increase of $57 — 9.1 percent — over fiscal 2016. 

The board set the District’s property tax rate at 22 cents per $1,000 of assessed value, an increase of one penny over the current fiscal year. For a District property assessed at a value of $400,000, the tax would increase from $84 to $88.

Property tax revenue accounts for less than 13 percent of the District’s total revenue. According to the District, the use of its taxing authority allows the District to issue general obligation bonds, which offer a more favorable interest rate than revenue bonds when funding capital projects. 

For its overall operating budget for 2017, the District announced a 13.88 percent increase, with a combined operating and capital budget hike of 12.54 percent.

The budget includes a 9.78 percent increase in its two-tier water rate schedule and a 13.6 percent increase in the base charge for a residential meter. The Administrative Board approved an operating budget of $4,379,263 and a total budget of $4,670,434.

According to the District, the increases are necessary to address several issues. In December 2015, the City of Newport filed with the Rhode Island Public Utilities Commission for a wholesale water rate increase to the District of 28 percent to take effect on July 1, 2016. 

The increase in the wholesale cost of water purchased from Newport accounts for nearly 75 percent of the District’s total budget increase. In addition, the District added a staff accountant to improve its financial management and reporting, including new state reporting requirements for fire districts. 

Also, due to the increasing age of the distribution system, there has been an upward trend in the cost of system repairs, including a needed $35,000 repair on the subaqueous water main under the Sakonnet River between Portsmouth and Tiverton, the District said.

Chairman defends hikes

Administrative Board Chairman Phil Driscoll said the water rate increases are necessary to maintain a balanced budget while funding the District’s operating costs, technology improvements, capital improvements and debt service. In addition, Mr. Driscoll said the Administrative Board has put an emphasis on increased leak detection to reduce lost water. 

Mr. Driscoll said the Board is working hard to properly maintain and improve the water system while providing fair and reasonable rates for customers and taxpayers. He added that the board will continue to ensure the cost it pays for wholesale water is fair and reasonable by working with Newport Water and intervening in Newport rate filings before the Public Utilities Commission, as necessary.

Portsmouth Water and Fire District

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