Dover must develop equitable water rate plan
At the latest pub hearing on the proposed city of Dover water rate plan on July 11, 2013, I presented a report of the analyses of data from the Dover water and sewer departments. All data used in these analyses were obtained through requests for public information from both the city of Dover and Bonner County. This was a private study, not supported by public funds and was not commissioned by the city of Dover.
A wide range of data were analyzed including 1) the city of Dover monthly water and sewer account data and 2) meter readings for an entire fiscal year and 3) water plant production rates. In addition, all city of Dover water and sewer account data were matched to Bonner County tax rolls.
Key findings of this analysis:
1. High rates: Presently, Dover’s combined water and sewer rates are probably the highest in the state of Idaho. This is supported by the 2010 survey of water and sewer rates performed by the Association of Idaho Cities, where Dover had the fourth highest combined water and sewer rate for the state of Idaho (when standardized to 7,000 gallons) and the second highest for communities smaller than 800 residents. Since the AOIC study was published, Dover’s water and sewer rates have increased by 8 percent. In addition, the city of Dover has no capital reserve fund for the replacement of an aging meters and water lines.
2. Lost water: Between 30 to 40 percent of the water produced by the city of Dover does not make it to the consumer. Annually, there are 3.4 million gallons of city water unaccounted for in the account records resulting in a significant loss in revenue.
3. Missing hook-ups: Outside of the Dover Bay development, few multi-family and auxiliary units are paying for additional hook-ups (called equivalent residents or ERs). However, the Bonner County tax rolls indicate there are a number of multi-family and/or auxiliary living units outside of the Dover Bay development that should be paying for additional hook-ups.
4. Inequities: The largest manufacturing facility in the community uses 12 percent of the Dover water and sewer resources yet pays only 2 percent of the financial requirements. Dover City Ordinance 104 (Dover wastewater regulations) provides concise calculations as to how manufacturing plants should be charged. Ordinance 104 clearly indicates a least a seven fold increase in the manufacturing facility’s required ERs. However, Ordinance 104 is being circumvented for this large business. It is unclear how the manufacturing facility received a designation of three ERs when they use over one million gallons each year.
These factors have a significant impact on the water rates for Dover residents:
Lost revenue: At the present combined water and sewer rate of $101.96 per month for each ER, an additional 30 ERs would increase the monthly cash flow by more than $3,000 per month. This revenue could be used to reduce each household’s water and sewer rate by $14 per month. In addition, if the 3.4 million gallons of unmetered water were reduced to more acceptable levels, this would reduce the water rate by an additional $4-$6 per month for each household.
No capital fund: At approximately $16,000 per hook-up, an additional 30 ERs represents approximately $500K. As the majority of these hook-ups would be outside the urban renewal area, this money could be directed to a reserve capital fund which is presently empty.
The bottom line is that if Ordinance 104 had been enforced for all water and sewer users, then it is probable that the last three or four increases in the City water and sewer rates would have been unnecessary. The monthly combined water and sewer rate would be less than $85 per month as compared to today’s monthly rate of $102. In addition, the reserve capital fund would be partially funded instead of completely empty.
The city of Dover is clearly accountable for the present situation and should be compelled to provide some answers. Who was responsible for the very low calculation of the ERs for this manufacturing facility and the resulting low monthly charge?
On Sept. 13 of last year, when the resolution came before the council to raise water rates, Councilwomen Denise Travis and Annie Shaha voted against the increased rates saying that there had not been sufficient time for the public to provide input. However, Councilman Dave Darling, Councilwoman Peggy Burge and Mayor Randy Curless all voted to increase the water rates. These increased water and sewer rates were put on the backs of the Dover residents rather than investigating the reasons behind the increased costs
Councilwoman Shaha has asked that the city of Dover to put together an advisory work group to explore these issues and to develop a water rate plan that is fair and equitable. For this work group to be successful in resolving these issues, it needs the support of Dover residents. It is time for Dover residents to hold the mayor and city representatives accountable for their high water and sewer rates.
Contact your city representatives and ask for their support in developing a water and sewer rate plan that is fair and equitable.
The full analysis report can be found at http://www.CityOfDoverIdaho.org/.
BILL STRAND
Dover