Clymer residents hear about water project, rates during hearing
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CLYMER -- Clymer's ongoing upgrade to the town's water system is bringing with it an increase in rates for those on the town's water service.
A public hearing was held during the town's October meeting, including a presentation on where the water project currently stands and how people's rates will be affected by it.
Matt Zarbo, design engineer with Square Engineering, the engineers behind the project, presented to those in attendance, beginning with a recap of the construction that has been seen around town, along with the new water tank and new groundwater well. The project, he said, is about 70% complete.
"A lot of these items, the water main, water tank, are 50 to 100 year items," Zarbo said. "The meters are only 20 years, but these are 50 to 100 year items. The system was constructed, I believe, in 1967, so you start looking at it; we're over 50 years old. There was asbestos in the pipe. These are items that we're replacing with modern construction materials ... these items should not be replaced in any of our lifetimes again."
The current authorized cost of the project reaches just under $8.4 million. The town received a $5 million grant, based on 60% of the project cost, which Zarbo said means for every dollar, fifty cents is funded up to $5 million. It is a zero percent interest loan for the span of 30 years. Zarbo also addressed other grants that the town did apply for with the project, noting that the current package was basically the best they could get.
Looking at the yearly debt for the town, specifically the water district, the additional debt for the town will be somewhere around $400 to $450 additional a year. A rate study was done with the town's fiscal advisor, Municipal Solutions.
"What a rate study does is it takes all of your expenses for the water district, takes all of your revenues and compares them," Zarbo said. "Some years, the town has had a surplus, taking in more revenue than expenses, and some years there's been a deficit. ... The rate study looks at everything and evaluates what the rates should be."
Zarbo noted that every year other costs are increasing, including the items that the town has had to factor into the new water system such as electricity and fuel. Right now a rate increase of about $380 is projected for residential water users, based on 40,000 gallons of usage per year. Zarbo added that average households of one or two people are probably not using 40,000 gallons a year, but that that is the average number for people on average systems.
Additionally, an increase in the rates with these same numbers have been discussed for the last five years, Zarbo said, since the project was first talked about. These numbers, he said, are not new and something the town board has considered for many years.
Zarbo compared current water rates to what the new rates would be, which will also be changing from semi-annual to quarterly billing. The estimated yearly bill for an average user with the current system is $420 a year, and that is set to change to around $700 a year. There is an additional charge with the new rates, a capital debt charge to help pay off the project. This type of project, Zarbo reemphasized, has to happen every 50 to 100 years for every water system like this in the state. Zarbo added that this raised cost might seem high, but that this system cannot compare to places like Jamestown with a lot more users on the system than Clymer's 245.
"You have to compare your system size to the average town system in New York State, which is much smaller with much less users to share in the cost," Zarbo said.
The $420 yearly bill is low compared to other towns in the state with similar water systems, Zarbo said, and $700 is about the median for towns who just went through upgrades such as Clymer's current project. Places that have not updated their water system in many years will have a lower rate cost, he added.
"There's a long term benefit to the project, and that is to continue reliable service," Zarbo said. "I understand that nobody likes a rate increase, but for you to turn on your faucet and have water come out there's certain things that have to happen, and one of those things is this upgrade."
Zarbo then answered questions from attendees, including on the capital debt fee, which will be included for the next 30 years, noting that with the 245 users the system is on the smaller size and the new rates will affect everyone differently. The overall project is expected to be done next spring, and the implementation of a new well, the new meters, and other parts of the system were also discussed. It was noted that the original system has done very well for the past 50 years, and the new system will last the town another 50 to 100 years. All of the information shared during Zarbo's presentation and the public hearing will be placed on the town of Clymer's website, townofclymerny.gov. The new rates are set to take effect on January 1.