Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, September 28, 1993 TAG: 9309280333
SECTION: CURRENT PAGE: NRV-1 EDITION: NEW RIVER VALLEY
SOURCE: PAUL DELLINGER
DATELINE: PULASKI LENGTH: Medium
If council approves the increase, it would cover water used in October, billed in November and payable in December. The rate would continue through next June, by which time more changes will probably have been approved.
The interim change would be based on the existing rate structure, which gives discounts to high-volume industrial users. But that has not stopped representatives of some of those industries from objecting to the increase.
Since sewer rates are not affected, the minimum combined water-sewer bill customers receive would go up 6.9 percent, or $1.53 per month.
The minimum water payment would go from $6.38 to $7.91, while sewer would remain at $15.75, changing the total bill from $22.13 to $23.66.
Changes to the rate structure itself will be considered later. A second public hearing will also be held tonight on amending the 1993-94 water fund budget, mainly to provide more money this year to pay for water projects.
The increase of $62,600 would pay for cleanup of the sludge pond and a scheduled replacement of worn-out water meters, which is actually already under way. It would also cover the cost of the water rate study that recommended the 24 percent rate increase.
The study is being carried out by Ernst & Young, a Washington, D.C.-based consultant. The firm was hired to come up with the interim rate recommendation for the balance of this year, and with long-range recommendations to keep the water system financially self-sufficient.
Although the firm is still working on long-term proposals, Ellen Duke Erhardt and Lisa Sharpe of Ernst & Young analyzed needed projects for the town's water system and have recommended seeking Farmers Home Administration funds for as many of those as possible.
This year, the projects to be funded through FmHA low-interest loans would include pump station improvements and engineering costs for work on Hogan's Dam and the Masburn Avenue connection to Peppers Ferry Road.
Ernst & Young will try to have its complete report in about two months.
It will include a comparison of Pulaski's rates with those of similar utilities in Virginia, recommendations on the rate schedule to relate use to the type of customer, evaluation of impacts on customers, and development of capital charges.
\ The proposed water rate changes for customers in Pulaski would be as follow:\ \ Water used Current rate New rate\ First 3,000 gallons $6.38 $7.91\ Next 20,000 gallons .99 per 1,000 gallons $1.23 per 1,000 gallons\ Next 200,000 gallons .90 per 1,000 gallons $1.12 per 1,000 gallons\ Next 777,000 gallons .83 per 1,000 gallons $1.03 per 1,000 gallons\ Next 2 million gallons .73 per 1,000 gallons .91 per 1,000 gallons\ Next 2 million gallons .63 per 1,000 gallons .78 per 1,000 gallons\ Over 5 million gallons .52 per 1,000 gallons .64 per 1,000 gallons\
The rate, based on using 5,000 gallons of water per month, compares with\ nearby localities as follows:\ \ Pulaski (existing): $8.36\ Pulaski (proposed): $10.37\ Blacksburg: $10.47\ Christiansburg: $8.50\ Dublin: $14.50\ Pulaski County: $21.00\ Radford: $7.04\ Vinton: 11.50\ Wythe County: $22.50\ Southwest Virginia average: $13.64\ Virginia average: $13.38
by CNB