In an effort to avoid future disproportionately large water rate increases, the Greater Pine Island Water Association Board of Directors has established a policy to annually review current revenue requirements with relation to operational expenses, capital needs, and the current rate of inflation.
This year's review has determined that there will be a need for a 5.0 percent water rate increase to help balance the 2013 budget. The 5 percent increase will take effect with the January 2013 billing.
The rate increase in 2013 is being driven by a mandate from the Florida Department of Transportation (FDOT) to move our 8-inch water line. The water line, currently located on the south side of Pine Island Road, must be moved to avoid being under the new proposed eastbound travel lanes FDOT will be installing when the road is widened. The cost to move the 1.5 miles of 8-inch water line is estimated to be 1.03 million dollars.
The real dollar cost of the 5% water rate increase to our membership is dependent on how much water is used. An average GPIWA member uses 4,000 gallons/month. The increase for the "average" user amounts to $1.47 extra per month. For new or additional water meter service, the Association's capital charge will increase by $120/unit for a 5/8" water meter installation.
Source: William J. Thacher, General Manager