bs02064_.wmf (12808 bytes)   New Water Increases, or Ratepayers get sock by the Year 2000

The city council again prove that they cannot think.  They approved the language in the MUA contract that gives an autonomous agency the right to negotiate contracts. But then again, the council wants more money in order to hire more political supporters.  They are following the marching orders of Schundler.

Robert Lombard, the Business Administrator gave a power point presentation to the city council highlighting an increase in water sales.  He said he believed United Water reached their "benchmark" of 85% collection.  He was corrected by Bill Macchi of the MUA who said United Water has only collected 77%.  When the city managed water, the collection rate was in the 70% range, so United Water is not doing any better.  However, this administration extended the contract to United Water for eight more years even though there was two years left on the previous contract.

Ratepayers will be hit with a 17% increase:

Year Sales Growth Rate Increases Large Meters Revenue
2000 3.0% 8.0% 0.5% 55,514,623
2001 1.0%   2.0% 57,370,436
2002 1.0% 3.0% 1.0% 60,446,832
2003 1.0%   0.5% 61,462,468
2004 1.0% 2.0%   63,303,352
2005 1.0%     63,933,877
2006 1.0% 2.0%   65,845,625
2007 1.0%     66,497,975
2008 1.0% 2.0%   68,486,517

Large consumers are getting a break, their increases will be 4.0%, while the homeowner will be socked with a 17% increase.   I guess, Schundler and company cannot wait to put more houses into lien.

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