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Water and sewer bills could increase by 2011 Date published: 11/17/2009
Spotsylvania County will have to raise water and sewer rates in fiscal year 2011.
The rate increases are necessary to pay the debt service on $44 million the Utilities Department needs to borrow chiefly expanding the Massaponax Wastewater Treatment Plant for about $15 million. "If we don't move that project forward now then we will move into a period where we will need a water treatment and wastewater expansion, and it would be too difficult for the rate payers to do it at same time," said Utilities Director Ed Petrovitch. The county last increased rates in 2005, over a three-year period. Another problem the county faces is new connections have dropped sharply, which means less revenue for the utilities fund. In 1998, there were almost 2,000 new customer accounts. The number of new accounts now is under 200. This reduced revenue by $22.4 million between 2006 and 2010. Without increasing rates to ensure there is enough money to pay debt service on bonds, the Utilities Department risks having its credit rating reduced, which means higher interest rates on borrowing. For the typical user, which is a household using 5,500 gallons or less a month, the rate increases are minor. For 2010, one can expect a bill of $45.15. In 2011, the bill will be about $48.12, $51.37 in 2012 and $55.05 in 2013. Base fees for water and sewer and administrative fees will increase from $5.44 in 2010 to $12.61 in 2013. The larger the meter, the higher the base fees will be. The Utilities Department also is offering a 15 percent discount on availability fees for mixed-use development that has a commercial component of two or more units and five or more homes in the same building. On Nov. 10, supervisors voted unanimously to send the proposal to a public hearing in December. Dan Telvock: 540/374-5438
Read more stories about Spotsylvania Date published: 11/17/2009
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