Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, May 27, 1993 TAG: 9305270175
SECTION: CURRENT PAGE: NRV2 EDITION: NEW RIVER VALLEY
SOURCE: PAUL DELLINGER STAFF WRITER
DATELINE: PULASKI LENGTH: Medium
Town Council voted 5-3 at a budget meeting Wednesday to request study proposals from consultants as early as possible. Consultants will be asked to have their proposals within two weeks.
Assistant Town Manager Rob Lyons said the water fund probably will be running a deficit by August.
The town has money to cover its water expenses, but the fund itself soon will be in the red. Council looked at three possibilities Wednesday for attacking the problem.
The options were: the fast-track water rate study by consultants, an immediate across-the-board rate increase, or an immediate rate increase with variable rates like those the town has now.
During a meeting Tuesday with Draper Aden Associates, a Blacksburg consulting firm that provided data on water-rate structures elsewhere, Councilman Don Crispin proposed that a decision be made on water rates immediately and fine-tuned over the coming year.
Council considered that idea Wednesday but voted it down 6-2, with only Crispin and Andrew Graham supporting it.
Roy D'Ardenne's motion for the fast-track study passed 5-3, with Nick Glenn joining Crispin and Graham in the opposition.
The town has two major industrial customers, Magnox Inc. and Renfro Corp., who get rate breaks as high-volume users. Magnox has indicated it would consider building its own water filtration system rather than using town water without such a break.
The study will look at how that would affect overall rates.
Graham favored imposing a high standby fee in such a case because, even with its own plant, there would be times when an industry would still need town water. Town Attorney Frank Terwilliger said there is a question of whether such a fee is legal.
"These are all things that would be folded into the analysis," Lyons said.
Because council members do not agree on water-rate structures, Mayor Gary Hancock said, a consultant might provide an independent view.
Council will take time out from studying its general fund budget for 1993-94 when it meets again Friday morning and concentrates on the water fund.
by CNB