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KGSA holds hearing on proposed increases

The King George Service Authority Board will hold a public hearing next Tuesday, June 21, on proposed rate increases of 5 percent for water and 12 percent for sewer usage. The proposal would also increase charges for new connections by 5 percent. The meeting begins at 6 p.m.

The new user rates would be reflected in the July billing and would affect utility usage fees for Service Authority customers with water, sewer or both services. Higher charges for new connections would go into effect July 1. 

Residential bills for customers with both water and sewer service using up to 5,000 gallons per two-month billing period will go up by $9.01. The minimum bi-monthly bill for water and sewer will go

from $95.01 to $104.02.

With billing every other month, that equates to a nominal increase of $4.50 per month for water and sewer customers with a minimum usage of 5,000 gallons per two-month billing period.  The 5,000-gallon minimum is not being changed. Service Authority customers receive six bills per year, with billing and minimum usage predicated on bi-monthly billing.

• WATER: The usage rates for water would go from $3.68 to $3.87 per 1,000 gallons for water for a 5,000-gallon minimum usage during each two-month cycle. The flat fee for debt service for water would go from $15.75 to $16.54. The minimum bill for water-only would go from the current $34.15 to $35.84 for two months of service.

• SEWER: The usage rates for sewer would go from $7.69 to $8.61 per 1,000 gallons for sewer for a 5,000-gallon minimum usage. The flat fee for debt service for sewer would go from $22.40 to $25.09. The increases result in two-month bills of $68.14 for 5,000-gallon minimum usage for sewer-only.

• WATER & SEWER: The minimum bills for customers using up to 5,000 gallons for 60 days would go from the current $95.01 to $104.02 every two months for customers with water and sewer service, which is about a 9 percent increase.

An average bi-monthly residential bill for both water and sewer service would go from $194.52 to $213.22, which would be a 10 percent increase. That “average bill” is based on a usage of 13,750 gallons over a two-month billing period.

BUDGET
The Service Authority’s 2011-12 budget is proposed at $4,165,438. That’s lower than the current year’s 2010-11 budget of $4,210,575. Three existing vacant positions will not be funded in the upcoming budget. As of the end of April, the Service Authority was projected to spend $4,046,298 through the end of this June, which would be 4 percent under budget, if that projection holds. Hopefully, it will, as revenues were also projected to come in 4 percent under budget.

The King George Service Authority is a small enterprise without the advantage of the economies of scale provided to larger systems. It owns and operates 12 water systems and five wastewater systems with about 3,650 customers, including both residential and commercial. About half the customers have both water and sewer service, with the bulk of the remaining being water-only accounts and only a few sewer-only customers.

The KGSA Board is composed of the members of the Board of Supervisors.  That arrangement is expected to continue at least until it is a operating on its own and in the black on an annual basis.

 

Phyllis Cook

 

 

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