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 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% water rate increase to balance the 2012 budget. The 5% increase would take effect with the January 2012 billing.
Since 2007 and with the economic downturn, GPIWA has experienced a 21% loss of revenue. However, from 2007-2011, the Association has been able to keep the budget balanced with only a combined 9% rate increase over that same time span. The additional revenue loss (12%) was made up through operational and maintenance budget cuts, cuts in personnel benefit costs, and in general finding alternate, less expensive ways to operate. However, the loss of revenue coupled with a distinct lack of additional growth within the customer base and the mandate to move our waterline along Pine Island Road when it is widened ($1-million dollar capital project) has dictated the need for the water rate increase in 2012.
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 $1.40 extra per month. For customers seeking a new or additional water service, the Association’s capital charge will increase by $114/unit for a 5/8″ water meter installation.
The General Manager and staff has set aside the hours of 4 p.m.6 p.m. on Nov. 3 in the GPIWA Boardroom, 5281 Pine Island Road, to meet with any members who would like to discuss the need for this water rate increase in more detail. I look forward to meeting you. You may also call me with any questions or concerns you may have. I can be reached at (239) 283-1071 during business hours.
William J. Thacher
General Manager