City of Westminster Water Rate Increase press release
Press Release
Contact: Kelley Martin
Phone: (410) 848-4363 FOR IMMEDIATE RELEASE
Tuesday, February 24, 2009
Water Rate Increase for City
City of Westminster
56 West Main Street
Westminster, MD 21158
Phone (410) 848-9000
Fax (410) 848-7476
The City of Westminster has released the results of the Water and Sewer Rate Structure Study completed by the Municipal and Financial Services Group. The study recommends an increase in both water and sewer rates to be phased in over a two-year period with increases beginning July 1, 2009.
The last rate study performed by the City was completed in the 1970s and contained no less than 19 different categories of use, each with separate rates for water and sewer. However, even this complex rate structure was unable to produce enough revenue to cover the cost of operating the water and sewer system.
Mayor Thomas Ferguson indicated that the new rate structure had to meet the following criteria:
simplify the current rate structure,
design a rate structure to encourage water conservation,
comply with current industry standards in the development of a utility basis method for the calculation of rates;
and recognize that the system includes both users inside and outside the City.
After a competitive bid process, the Municipal and Financial Services Group was selected to develop the rate structure model. This firm has extensive experience throughout the United States.
“The basic rate structure divides users into categories based on meter size, inside the City or outside the City, and establishes a fixed fee based on the size of the meter used. If the customer uses 18,000 gallons or less per quarter, which is the average national quarterly usage, a nominal fee is charged for each 1,000 gallons used. A premium fee is charged if the use is over 18,000 gallons.
This new system gives customers the opportunity to control their costs through the use of their water resources,” commented Dr. Robert Wack, Council Finance Committee member.
“The City of Westminster operates the water and sewer funds as enterprise funds—which must be supported by the fees and charges collected from water customers—not general tax revenues.
We follow the same Public Service Commission guidelines which apply to other utilities like the Baltimore Gas and Electric Company and Washington Suburban Sanitary Commission,” stated Marge Wolf, City Administrator.
Having a major impact on both the water and sewer systems are the mandated upgrades required to meet the more stringent health and safety standards imposed by the Maryland Department of the Environment.
Among these capital projects are the $11M new Cranberry Water Treatment Plant and the $4.5M Medford Quarry Pipeline allowing the Quarry to be used as an emergency water source under severe drought conditions.
While low interest loans are available from MDE for these capital projects, the debt service must be provided by the users of the system.
To help our customers determine how these new rates will impact on their individual water bills, the City will establish a Water and Sewer Bill calculator on our web site—www.westgov.com—effective March 1, 2009.
You will need your latest water bill and will use the information on that bill to fill in the yellow boxes on the calculator, click on return and the new rates will automatically be calculated for you. If you do not have access to a computer, you may visit the Westminster Branch of the library and they will assist you in calculating the rate.
“The Common Council and I know that this is not a welcome rate increase given the current economic situation but we are required to operate the water and sewer systems in a manner which ensures the health and safety of our system users. We are phasing in the increase over an extended period of time to cushion the impact,” Mayor Ferguson said.
“We will hold a public hearing on this rate increase on March 23rd at the John Street Headquarters of the Fire Department. Written comments will be received until 5:00 p.m. March 31, 2009. The rate structure model in its entirety is available for review at City Hall and at the City Administrative Offices at 56 West Main Street.”
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Press Release
Contact: Kelley Martin
Phone: (410) 848-4363 FOR IMMEDIATE RELEASE
Tuesday, February 24, 2009
Water Rate Increase for City
City of Westminster
56 West Main Street
Westminster, MD 21158
Phone (410) 848-9000
Fax (410) 848-7476
The City of Westminster has released the results of the Water and Sewer Rate Structure Study completed by the Municipal and Financial Services Group. The study recommends an increase in both water and sewer rates to be phased in over a two-year period with increases beginning July 1, 2009.
The last rate study performed by the City was completed in the 1970s and contained no less than 19 different categories of use, each with separate rates for water and sewer. However, even this complex rate structure was unable to produce enough revenue to cover the cost of operating the water and sewer system.
Mayor Thomas Ferguson indicated that the new rate structure had to meet the following criteria:
simplify the current rate structure,
design a rate structure to encourage water conservation,
comply with current industry standards in the development of a utility basis method for the calculation of rates;
and recognize that the system includes both users inside and outside the City.
After a competitive bid process, the Municipal and Financial Services Group was selected to develop the rate structure model. This firm has extensive experience throughout the United States.
“The basic rate structure divides users into categories based on meter size, inside the City or outside the City, and establishes a fixed fee based on the size of the meter used. If the customer uses 18,000 gallons or less per quarter, which is the average national quarterly usage, a nominal fee is charged for each 1,000 gallons used. A premium fee is charged if the use is over 18,000 gallons.
This new system gives customers the opportunity to control their costs through the use of their water resources,” commented Dr. Robert Wack, Council Finance Committee member.
“The City of Westminster operates the water and sewer funds as enterprise funds—which must be supported by the fees and charges collected from water customers—not general tax revenues.
We follow the same Public Service Commission guidelines which apply to other utilities like the Baltimore Gas and Electric Company and Washington Suburban Sanitary Commission,” stated Marge Wolf, City Administrator.
Having a major impact on both the water and sewer systems are the mandated upgrades required to meet the more stringent health and safety standards imposed by the Maryland Department of the Environment.
Among these capital projects are the $11M new Cranberry Water Treatment Plant and the $4.5M Medford Quarry Pipeline allowing the Quarry to be used as an emergency water source under severe drought conditions.
While low interest loans are available from MDE for these capital projects, the debt service must be provided by the users of the system.
To help our customers determine how these new rates will impact on their individual water bills, the City will establish a Water and Sewer Bill calculator on our web site—www.westgov.com—effective March 1, 2009.
You will need your latest water bill and will use the information on that bill to fill in the yellow boxes on the calculator, click on return and the new rates will automatically be calculated for you. If you do not have access to a computer, you may visit the Westminster Branch of the library and they will assist you in calculating the rate.
“The Common Council and I know that this is not a welcome rate increase given the current economic situation but we are required to operate the water and sewer systems in a manner which ensures the health and safety of our system users. We are phasing in the increase over an extended period of time to cushion the impact,” Mayor Ferguson said.
“We will hold a public hearing on this rate increase on March 23rd at the John Street Headquarters of the Fire Department. Written comments will be received until 5:00 p.m. March 31, 2009. The rate structure model in its entirety is available for review at City Hall and at the City Administrative Offices at 56 West Main Street.”
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Kevin Dayhoff www.kevindayhoff.net http://kevindayhoff.blogspot.com/
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