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30 Buildings Face New Excess Water Use Charges of 85%; Charge Doubles. Posted on Monday, March 29 @ 09:15:56 EST by jfbailey

Government

WPCNR Common Council Chronicle-Examiner. By John F. Bailey. March 29, 2004, UPDATED with Rate Structure Chart, 10:45 A.M. E.S.T. Correction, April 1, 2004: The city’s former Budget Director, Eileen Earl, took the wraps off a study of trends in White Plains water consumption  at last week’s Council meeting, calling for rates that would virtually double water charges for commercial buildings using over 250,000 cubic feet of water in a three-month period, not in a one-year period as previously described. Ms. Earl advised WPCNR of the error, which actually means even higher annual costs for excess per capita users.  The new rates seek to have these buildings with a “large non-resident population” pay 85% more for  their “excess water usage” on a quarterly basis  while homeowners would pay 15% more  beginning today, April 1.

 

 

BEST PERFORMANCE IN A CONSULTING ROLE: Eileen Earl returns. The former Budget Director proposed sharply higher water rates to turn red ink to black by fiscal year 2005-2006, with out depleting the rapidly declining Water Fund Balance. Ms. Earl made her presentation last Wednesday at the Common Council marathon Special session. Photo by WPCNR News.



Ms. Earl’s study recommends the city raise initiate an excess usage for commercial users that will close-to-double water charges for 30 major buildings in White Plains consuming in excess of 500,000 cubic feet of water in six months (not annually as stated in the first edition of this article)  by the non-resident tenants of their properties.

 

Rates will go up on residential users, but not at the same rate. New York City’s 272% increase in Excess Per Capita Charges is the factor driving the need for the hike in White Plains water rates to make up a deficit eating into the Water fund Balance  at the rate of $1.1 Million in 02-03, and  $1.8 Million in ’03-04.

 

Earl said the water fund balance was currently sitting at the $16 Million level, and could absorb the last two years of deficits but would be faced with a $6 Million-PLUS hit, because of the city needs to replace its 120 Million Gallon water tank at the Kensico Reservoir within the next two years, according to Commissioner of Pubic Works, Joseph Nicoletti.

 

THE NEW RATE STRUCTURE EFFECTIVE APRIL 1, 2004, pending Common Council approval April 7. Note the graduated rates for heavy water use in the extreme right hand column. The doubling occurs when consumption is flowing at the 500,000 cubic foot level. Photo by WPCNR News. Source: City of White Plains

 

 The Basic Schedule for the typical homeowner would go up 15%. An average White Plains Family Dwelling with 4 persons, Earl said, using 16,042 Cubic Feet of water, currently pays $136.34 a year in water charges. Under the new rate, effective April 1, they would pay $159.20, an increase of 15%.

 

It is a different story if you are a big commercial operation, exceeding Ms. Earl’s guideline of 250,000 cubic feet of water in a quarter, you are hit hard, paying $4.62 per 100 cubic feet as opposed to the $2.51 you pay currently.

 

 Ms. Earl’s study proposed quarterly billing of these water clients (of which there are 30 in the city), and racheting up their rate 85%, from $2.51 [per  cubic foot], which consumers pay now to $4.62, for consuming over 500,000 cubic feet of water in six months (not annually, as previously reported).

 

Real Building Example -- a $182,620 Increase Annually

 

Earl cited a specific example of a current building in White Plains that uses 5.2 Million cubic feet in six months. That building pays $111,057 currently. The new proposed rate goes up 85%, raising that building 2004-2005  six-month water bill to $202,367. In this building’s case, their water charges almost double over six months from the current rates, and would be up $182,620 for the year.  The same 85% hike will affect 29 other existing buildings around the city. No list of the effected properties was provided. Consumption it should be noted, is charged at a gradient rate, and will be billed quarterly.

 

Earl said the new rates would begin retroactive to April 1, pending Common Council approval of the rate hikes at their April 7 regular monthly meeting. Also included in the rate hike would be increases in connection charges. ranging from $2 for a 1" connection (now $8) to $45 for an 8" connection.

 

 

 

Rate History

 

Earl noted that the last water rate hike in White Plains was administered in 1999 and it was 12% across the board.

 

Since then, her study notes, New York City has raised the price of “raw water” to White Plains 41.3% from $383.78 per million gallons to $542.36 per million gallons.

 

New York City has also assessed White Plains  272.7% more in Excess Per Capita Charges, (which are charges for excess water consumption beyond the levels dictated by the 2000 census). These charges, Earl said have gone from $112,440 a year to $419,073 a year, because of the growth in White Plains non-resident population in the downtown that increases consumption, yet does not pay for the water they use. Instead, the city has to make up the difference not collected from residents. Commercial building owners use more water but do not pay the surcharge New York City charges the city.

 

Earl noted dryly that the census will not be adjusted until 2010 and the city has to find a way to meet these excess water consumption needs. Her solution is to charge commercial users a premium for their excess water consumption to meet those charges.

 

Ms. Earl said that White Plains charges the lowest water rates of any other city or town in the County. White Plains charges the consumer currently $115 a year per 1,000 gallons. Yonkers is next. Mount Vernon is next up the list at $140. In the middle of the list is New Rochelle at $307 per 1,000 gallons.

 

THE TOP 50: White Plains was last in water rate charges among 50 Towns, municipalities, cities in Westchester County in 2001. Photo by WPCNR News. Source: Westchester County Fall Water Conference, 2001. 

 

 

 



Note: WPCNR misreported the impact of the new water rates on excess per capita water users in the first edition of this article. Eileen Earl advised WPCNR that the increases for excess per capita users are not annual they are every quarter, meaning that excess per capita users face rates that will double their present charges on an annual basis.

 
Related Links
· City of White Plains
· More about Government
· News by jfbailey


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