SK Water, Wastewater Rates To Increase

In the second in a series of budget hearings on Tuesday, residents learned that unlike property taxes, rate increases would occur for water consumption and wastewater treatment.

The water enterprise fund will see an increase in operating costs by $28,797 next year, which is 4.5 percent more than what was budgeted in the current year.

The town’s Middlebridge and South Shore water districts have been served by United Water Rhode Island since 2002 and have seen no rate increase since October 1999.

In January, UWRI gained approval from the state Public Utilities Commission to implement about a 20 percent rate increase. Unit fees will increase from $175 for 5,000 cubic feet of water to $178. Administrative fees per unit will increase from $75 to $77. Excess fees will increase per 100 cubic feet from $2.91 to $2.97.

“These increases are necessary to keep up with what the costs of operating are,” Town Manager Stephen Alfred said. “This is also the first year we expect to see a rate increase from United Water on the water purchase that we have.”

Alfred said customers would not be responsible for the increased costs until the 2013-14 fiscal year billing period.

That year will represent yet another change in payment for customers. According to Alfred, the system will move from annual to quarterly billing after Dec. 31, 2013. Additional billing and collection costs will be associated with the added mailings and collections.

“Anything we do to reduce the cost there will then impact the year round resident,” Alfred said. “We need to better define as to what goes into the base rate and excess rates. I am not suggesting that the small seasonal user will be paying more than they should, but I also think of the virtue of water available to the 24/7, 365 consumer.”

The wastewater enterprise fund will also see increased operating costs next year in the amount of $38,891.  

To compensate, the minimum yearly user fee per single-family dwelling will increase from $225 to $229 per 10,000 cubic feet of wastewater. The excess rate of $2.85 per 100 cubic feet will grow to $2.90 for wastewater processed after July 1, 2012.

On Tuesday, the Town Council also reviewed the budgets for South Kingstown’s leisure services.

Many of the town’s programs, including the Peace Dale Office Building and recreation programs and camps, are self-supporting programs funded almost entirely on user fees. Increases in the recreation program accounts are mostly attributable to employment and benefit cost increases.

The Town Council will also meet jointly with the School Committee on Thursday, March 15 at 6:30 p.m. to discuss the funds transfer to the schools.