Tuesday, March 02, 1999
Newport water rates rise by a third
Average bill will add $12
BY TERRY FLYNN
The Cincinnati Enquirer
NEWPORT — Newport residents and people in surrounding communities who are supplied by the Newport Water Works are going to pay more — a lot more — for that water starting this summer.
City Manager Phil Ciafardini told the city commission Monday night that in order to support bonds for almost $5.8 million in repairs and improvements to the water works facility in 1999 and 2000, water rates will have to increase about 30 percent.
“We consider a typical user to be someone who uses 15,000 gallons, or 2,000 cubic feet, of water per quarter (three months),” Mr. Ciafardini said. “Currently that user pays $39.10 per quarter. That rate will probably increase by about $12 per quarter.”
The commissioners may be looking at an ordinance at the next regular meeting that will call for the rate increase, which would take effect in July.
The next steps
The commission will also determine which method of bonding will be used to raise the necessary dollars, but commissioners and Mayor Tom Guidugli seemed to agree Monday night that a general obligation bond structure, which backs the bonds with all the city's assets, was the best way to proceed.
“It's never an easy choice when you have to raise water rates, but this is something that must be done,” Mr. Ciafardini said. He said it is likely that in 2000 another increase of $1-$2 will be tacked on to water bills.
The plan calls for many of the more expensive improvements and replacements to be incurred during the first two years of a six-year plan that will ultimately cost more than $8 million.
“We want to be able to implement improvements with a minimum of impact on the users,” Mr. Ciafardini said. “We looked at what must be done immediately, and decided it would be better to go for a larger increase this year.”
Water Works Director Frank Peluso pointed out that about half of the items on the list of improvements are mandated by the Environmental Protection Agency and must be done.
Two of the largest projects are the $2.6 million improvement of the clarification system with new, state-of-the-art equipment, and $1 million for replacement of water meters.
“We have some of the larger, commercial meters that haven't been changed in 30 years or more,” Mr. Peluso said. “In some cases we could be losing as much as 20 percent (of revenue) because those meters are no longer giving accurate readings.”
Mr. Ciafardini said the additional revenue from the new meters could help pay off the bonds needed to finance the water works project.
Commissioner Beth Fennell asked Mr. Peluso if the list of improvements and replacements was complete, or if other large items n the next few years would cost the city additional money.
“We are comfortable that we have covered everything in our plan,” Mr. Peluso said. “But we have no way of knowing if the federal government will have additional mandates in the coming years that would affect us.”
Quality first
Commissioner Jan Knepshield said he felt the top priority of the water works was the quality of the product going to the user, and that paying for it was secondary.
He also pointed out that the new clarification system, one of only a handful in the nation, would enable the city to sell its water in places previously untouched.
“We'll have the best water you can get, better than most of those bottled waters,” he said. “That's another possible source of additional revenue.”
Mr. Ciafardini said the new system will produce much better water, and also will produce much more water than the old system. He said the city now makes more money selling water to wholesale customers than it does to residential customers, and that more wholesale sources could be acquired with the higher capacity.
Commissioners also learned Monday night that the Northern Kentucky Independent District Health Department had informed city officials that the city's wading pools should not be opened this summer unless substantial improvements were made in several areas.
“Pools are probably the biggest liability the city has,” Mr. Ciafardini said. “This is a problem, because the health department is telling us the public shouldn't be using them.”
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