Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, March 15, 1994                   TAG: 9403150210
SECTION: CURRENT                    PAGE: NRV-7   EDITION: NEW RIVER VALLEY 
SOURCE: New River Valley bureau
DATELINE: PULASKI                                LENGTH: Medium

PUBLIC HEARING TONIGHT ON PULASKI WATER RATES

The recommendations from Ernst & Young, a consulting firm hired by the town, is recommending adjustments to rate blocks, adoption of a fixed charge, consolidated flow charges for single-site customers with integrated operations that have multiple meters, and adopting an availability charge.

Currently, the rate structure has seven blocks with charges dropping at each level.

The monthly charge is $7.91 for the first 3,000 gallons, $1.23 per thousands gallons for the next 20,000, $1.12 per thousand for the next 200,00, $1.03 per thousand for the next $777,000, 91 cents per thousand for the next 2 million gallons, and 64 cents per thousand for all water used above 5 million gallons.

Some council members have objected to industry being given what amounts to a high-volume discount under this procedure. Others see it as an economy of scale.

The proposed new structure would have three volume blocks: $1.14 per thousand gallons up to 20,000, 93 cents per thousand from 20,001 to 700,000 gallons, and 83 cents per thousand for all over 700,001 gallons.

There would be a fixed monthly charge which would vary with the size of the meter. For a five-eights-inch meter, the most common used for residences, the monthly charge would be $5.09.

It would go to $11.36 for those using a one-inch meter, $21.60 for a one-and-a-half-inch meter, $34.39 for a two-inch meter and $72.67 for a three-inch meter.

The volume charge would be based on actual consumption rather than the current minimum charge for 3,000 gallons. Homes using less than 3,000 gallons would see their bills drop.

For users of town water living outside the town limits, all rates would be double the in-town charges.

Council will have to decide whether to accept all, part or none of the consultant's recommendations soon because the decision will affect the 1994-95 town budget which must be planned.

Council is also scheduled to hear from Doug Hudson, representing the Kroger Co., on the town's cigarette and tobacco tax.