Water rates in the Village of Northport will increase by 20% starting this month based on recommendations from a recent water rate study that the Northport Village Council unanimously approved at its Oct. 10 regular meeting.
In addition, the council approved an increase to the water fund revenue budget by $19,000, an increase to the water fund capital expense budget by $12,000, an increase to the water fund balance by $7,000, and authorized the village manager to enter into a contract for the replacement of the SCADA (Supervisory Control and Data Acquisition) system for an amount not to exceed $12,000.
In September, the council heard a presentation from Dawn Lund of Utility Financial Services, LLC, regarding the water rate and cost of service study. In the presentation, Lund also talked about a rate design that proposed rate increases of 20% per year beginning in the 2024-2025 fiscal year, as well as helped to determine recommendations regarding the appropriate levels of cash reserves and fund balance needed to continue operating. The projected annual revenue increase of the increase in rates is $18,742.16.
“The rate study recommended this 20% be applied to both the base rate charges to all 382 water customers, regardless of their usage, and to the usage fee for providing water, which is calculated in units of 1,000 gallons,” said Northport Village Manager Jim Dyer in his monthly report. “For typical residential customers, this represents a base rate increase from $36 to $43.20 per quarter and a usage rate from $1.40 to $1.82 per 1,000 gallons of water provided.”
Although the rate study recommends 20% rate increases over the next five years, the village council will “have to consider rates in light of actual revenue generated, and then set rates accordingly.”
“This study gives a clear plan to follow, but does not dictate, or guarantee, rates in the future,” Dyer said in his report.
Dyer also explained in his report how the water distribution system requires a new SCADA System and needed to be addressed before the November meeting. SCADA is a combined software system “that permits remote and on-site gathering of multiple data points concerning the operation of the water system to automate control, provide warning of system malfunction, and collect necessary information for compliance with state law.” A complete replacement was needed this fall despite the current system having been repaired several times before.
“The reason you have to do the SCADA system now is it communicates with all of the various points of contact… and you have to test it when the trees are peak or bare because if you do that, a Wifi signal is vastly different,” Dyer said at the meeting. “This is a system that automates the water delivery system, and more importantly, gives a warnings when there are problems that need to be directly and immediately addressed, so this is a critical system that needs to be addressed, and we need the money that’s currently not budgeted, and this will pay for it to be complete.”
To review the entire Northport water rate report online, go to https://villageofnorthport. net/village-council.
