Council has approved a financial plan that would see the Moorefield water rate go up 19% this year – and rise by 37% by 2015.
Nothing is official until the township passes a bylaw to that effect, but last week Finance Director Mike Givens told council the current rate of $32.45 is “below the required rate for full cost recovery,” as there are only 202 billing units in Moorefield.
“Because of the size of the system, it’s a real challenge . . . to make it a system that pays for itself,” Givens said.
For example, in 2010 Givens estimated the system’s total expenditures will be $203,922, with just $110,541 in total revenue, leaving $93,381 to be recovered from water users, resulting in a water rate of $38.52.
The amount to be recovered from users is expected to climb annually over the next six years, reaching $113,593 in 2015, when Givens estimates the number of users will be just 212. The water rate will climb at a corresponding rate – between 1% and 9% each year – culminating in a 2015 rate of $44.59; 37% higher than the current rate. That rate has been in place since 2008, when the township hiked the initial rate of $29.55 by 10%.
Councillors unanimously passed a resolution to receive and approve Givens’ financial plan for the Moorefield water system.
