City outlines water, sewer fee hikes

Under proposed water and sewer rate increases, the average Waynesboro family can expect to pay about $180 more for the services next year, Finance Director Pat Nicosia said during a budget work session Wednesday.

Members of city council listened to Nicosia and other city staff and offered sparse questions and comments.

City Manager Mike Hamp’s recommended fiscal year 2012 budget includes fee hikes of 34 cents per 1,000 gallons of water used, a 10 percent increase, and $1.96 per 1,000 gallons of treated sewage, a 35 percent increase.

A homeowner with a standard 5/8-inch connection would also see increases in fixed rates for water of 76 cents, or 10 percent, and $1.60, or 7 percent, for sewer, said Nicosia.

All told, the changes translate to about $30 more in each two-month billing cycle for a typical family of four using 6,000 gallons per month.

Fixed rate increases would be steeper for customers with larger lines.

For example, 4-inch lines would see fixed rates for water increase by $24.26, or 38 percent, and $52.70, or 158 percent, for sewer.

Customers with 8-inch lines would see even larger water fee hikes of $98.10, or 220 percent, and $86.50, or 191 percent, for sewer.

Mayor Frank Lucente expressed uncertainty about raising rates that much for customers with larger lines.

“It looks like there could be another way of doing it,” he said. “It doesn’t seem right to punch it up that much.”

Assistant City Manager Jim Shaw said the graduated fee increases based on pipe sizes are common among Virginia localities.

 “As you get into larger line sizes, what you’re really charging for is the availability of water and use of the system,” he said. “It’s not just how big the meter is; it’s how much water you have to provide at a certain pressure through those meters.”

Nicosia said a number of reasons are driving the need for increases, including: repayment of money borrowed for state-mandated rainwater inflow corrections and a new wastewater treatment plant, rising chemical costs and high energy bills for the new plant. The proposed fee hikes would bring in just enough additional revenue to allow the enterprise funds to break even, she said.

Nicosia said she expects the sewer utility’s debt service to level out next year and for the city to consistently owe about $2.3 million annually until 2032.

“When we get through this, we’ll be able to turn over a debt-free system to the next generation,” she said. “We don’t want to burden future generations with a lot of debt and infrastructure needs, so there is light at the end of the tunnel.”

The city council plans to hold a public hearing on the proposed increases at 7 p.m. Monday.