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Hearing planned on water rate changes

by Bill Strand
| September 16, 2014 7:00 AM

On Aug. 28, the Dover City Council unanimously approved the city budget for the new fiscal year which begins on Oct. 1.

In a time when every dollar is important, the City Council was able to reduce the annual city budget and for the first time in many years the property tax levy was not increased. The reduction in the city of Dover’s budget was the result of six months of diligent work by Dover’s new mayor and council as everyone worked hard to find ways to cut operating costs while maintaining quality services.

Part of this budget reduction resulted from a decrease in water department operating costs which have been reduced by decreasing the amount of water that is lost each month as well as decreasing the costs of managing the water system. In addition, revenues have been increased through the recovery of past due accounts as well as additional water hook-ups.

On Sept. 25 at 6 p.m., the city of Dover will be holding a public hearing to present its new proposed water rate structure and hear responses from the public. Presently, the water rates are $41.06 per month which includes 7,000 gallons. It is important to note that only 20 of the almost 300 residences and businesses in Dover use 7,000 gallons or more per month. These 20 users consume 44 percent of the water produced by the Dover water department but pay only 14 percent of the operating cost. The mayor and city council have worked to develop a water rate structure that was more fair and equitable to all residences and businesses in Dover.

The City Council has unanimously voted to propose a “pay-per-use” water rate that includes a base monthly rate of $25.21 with $0.0037 for every gallon used. Analyzing the Dover water consumption for the last 12 months it is estimated that 75 percent of the Dover residences should expect to see a reduced monthly water bill as the median monthly water cost for residences will be approximately $32. Residents and businesses that average more than 7,000 gallons per month can expect to pay more than they do now under the current rate structure.

This pay-per-use rate structure is used by many other cities in the local and regional area. This rate structure is more equitable as each user pays the same base rate and a per gallon rate for the water they use during the month. In addition, such a rate structure encourages conservation of water where the user’s monthly payment is tied directly to the amount of water used during the month.

The public is invited to the water rate public hearing to be held at Dover City Hall at 699 Lakeshore Drive in Dover on Sept. 25 at 6 p.m.

• Bill Strand is council president for the Dover City Council.