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HomeMy WebLinkAbout960403 April 3, 1996 Hagerstown, Maryland PUBLIC INFORMATION MEETING - WATER & SEWER RATE STUDY A Public Information Meeting was held by the Board of County Commissioners of Washington County in the auditorium at North Hagerstown High School at 7:00 p.m. to provide information on the water and sewer rate study currently underway by Black & Veatch and to hear public comments regarding the findings. Presiding at the hearing were County Commissioners' President Gregory I. Snook, John S. Shank, Vice President, and Commissioners Ronald L. Bowers, R. Lee Downey, and James R. Wade. Also present at the hearing were the following members of the Water & Sewer Advisory Committee: Sam Phillips, Joe Robeson, Peggy Bushey, Robert Holsinger, and Russell Weaver. Rodney Shoop, County Administrator, introduced the County Commissioners and Chris Hosler, Project Manager, representing Black & Veatch. Commissioner Snook stated that the purpose of the hearing is to inform the community of what has happened and what will be happening in the future at the Water & Sewer Department. He provided an overview of what has occurred since July 1995 when the Sanitary District was abolished and became the County Water & Sewer Department. Commissioner Snook listed some of the short-term solutions which have taken place, including restructuring of operations and elimination of 34 positions. He stated that the long-range solutions include the information which will be provided this evening by the consultant. Commissioner Snook also thanked Antietam Cable Television which was broadcasting the public information meeting. Mr. Shoop then introduced the County Commissioners and the members of the Water & Sewer Advisory Committee. Presentation by Black & Veatch Chris Hosler, Project Manager, stated that he was responsible for the detailed analysis of the study. He explained that the study focused on five areas: review of study objectives, approach, development, analysis, and results. Mr. Hosler reviewed the study objectives which were to address the following items: 1) subdistrict consolidation, 2) review for self-sufficient operations, 3) equitable cost-based rates, 4) develop adequate structures for other rates and charges. He stated that the financial planning approach separated the functions of the water and wastewater utilities and created two cash flow statements, one for operating funds and one for capital improvement funds. The key variables for the analysis were customer growth, County funding, operation and maintenance projects, capital improvement projects (CIP) and financing. He stated that Black & Veatch assumed one percent customer growth and they are projecting an additional $500,000 in County funding. Mr. Hosler presented the results of the wastewater financial plan and emphasized that these are preliminary numbers. He explained that the current revenues are $1.4 million less than required and the reserve funds are significantly underfunded. The CIP will require $27.6 million over the 11 year study period. He stated that they have identified a debt of $11.2 million required for funding. Mr. Hosler indicated that Black & Veatch is proposing a 25% rate increase in the first year and lower increases in subsequent years to try to bring the Water & Sewer Department to self-sufficiency by 2006. Mr. Hosler provided graphs for text year 1996-97 illustrating the impacts to each subdistrict of going to one uniform rate. He indicated that they are projecting a uniform rate of $27.89 per month for planning purposes. Mr. Hosler then presented the financial plan results for the water treatment. He stated that they found that current revenues are $.2 million less than required and that reserves are underfunded. He stated that they identified $3.8 million needed for CIP projects over 11 years and that future debt will require $2.9 million. Mr. Hosler projected a 25% increase in 1997 and reviewed the amount by which each subdistrict will increase or decrease using the uniform rate of $30.67 for each district. At this time, Commissioner Snook opened the meeting for questions and comments from the public from the list of those who had signed up to speak prior to the meeting (sign-up sheets attached). Approximately 54 citizens spoke in opposition to the rate increases proposed or with questions for the Commissioners regarding the background of the financial difficulties at the Water & Sewer Department. Commissioner Snook also reminded those in attendance that they may send written comments to the County Commissioners office at 100 West Washington Street, Hagerstown. After hearing all comments, the hearing was closed at 11:00 p.m. APRIL 3, 1996 PAGE TWO Several of the County Commissioners commented at this time regarding the proposal made by the consultants and the message they received from the residents of Washington County. County Administrator County Attorney , Clerk