WARWICK – A handful of Warwick business owners attended a public hearing on Thursday to voice concerns over the Warwick Sewer Authority’s proposed rate changes, which could result in thousands of dollars in new costs for them.
The authority has projected a new rate structure that would increase the commercial customer charges from $103.01 to a scaled fee based on meter size ranging from $320.87 to $23,491.53.
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“I was a little disappointed with the turn-out of the business community because they will be most affected by the rate changes,” Janine Burke, executive director of the authority, told Providence Business News. “Of the half-dozen that were there, it was generally agreed that the rates needed to be changed, but not right now. These are hard economic times for everyone.”
Because Warwick does not have any 10 inch meters, users with meters between 2 inches and 8 inches will notice the biggest change with their overall rates, increasing by 14.74 percent.
The average residential customer will pay $127.22, compared to the current flat fee of $103.01.
“It should be noted that the current system is not fair in that some large commercial users pay the same service charge as a single-family residence,” said Janine Burke, executive director, in a statement.
The proposed reform, based on a draft rate study compiled by a certified public accountant, was originally completed in January 2010 but underwent revisions following the March 2010 floods which destroyed the authority’s treatment facility and six pumping stations along the Pawtuxet River. The final versions of the study were presented and discussed by the authority’s board on Aug. 12.
The proposed rate changes intend to more closely reflect the authority’s costs. Currently, the authority owes the city of Warwick $6 million in accumulated debt, which is “typical” for a relatively new sewer system, said Burke, noting the authority was created in 1962. If the recommended changes to the billing structure are not implemented, the authority would be required to raise rates across the board by 13 percent.
The authority’s board of directors will next meet on Sept. 14 to discuss the results of the public hearing and discuss the possibility of “phasing in” the rate changes as many commercial users suggested at the meeting. The authority has allotted the next couple of months for public comments and expects to make a decision by early next year.
The rate changes were initially intended to affect users for the fiscal year ending June 30, 2011, but with the current delays, will be postponed to a future date, currently undecided.
“I would encourage the Warwick business community to voice any ideas they have about phasing in the rate changes,” said Burke.
The Warwick Sewage Authority encompasses 250 miles of sanitary sewer lines and 45 sewage pump stations.
