Notice of water rate increase
In an effort to avoid future disproportionately large (surprise) water rate increases, the Greater Pine Island Water Association Board of Director’s has established a policy to annually review current revenue requirements with relation to operational expenses, capital needs, and the current rate of inflation. While GPIWA was able to hold the line on water rates in 2010, the 2011 budget year review determined that there will be a need for a 3.0 percent water rate increase. The 3 percent increase will take effect with the January 2011 billing.
Despite the slowdown in the general economy, the need for a 2011 water rate increase is driven by price increases for just about everything GPIWA purchases to run the water system. The most significant and anticipated price increases for 2011 include water plant replacement systems and parts, water treatment chemical costs, energy (fuel and electricity), and the pipe and brass fittings used to make distribution system water line extensions and leak repairs. In addition, insurance costs, i.e. health, vehicle, commercial building fire, wind and flood, and liability costs continue to rise significantly.
Depending on member’s water usage, it is anticipated that the average residential water bill will increase by $.21 for every 1,000 gallons of water used. For customers seeking new or additional water service, the Association’s capital charge will also increase by $67/unit for a new 5/8″ water meter installation.
William J. Thacher
General Manager