Residents will get a chance to comment on the changes, but there may be little that can be done about proposed increases of 20.3% and 23.2% respectively for the water and sewer rates in Moorefield.
“I understand it’s significant and I don’t look at it lightly – and I don’t think council will either,” Finance Director Mike Givens said last week.
However, Givens explained municipalities must operate on a “full cost recovery” basis for municipal water and wastewater systems, meaning the total revenue received from charges to residents must be identical to the costs to operate the system.
“It’s an economy of scale issue,” Givens said, noting that having so few users in Moorefield – only 202 billing units – means each user has to pay more than they otherwise likely would.
Givens recommended raising the monthly water rate from $32.45 to $39.04 and raising the sewer rate from $29.85 to $36.79 – with both to take effect on Oct. 1 to coincide with the township’s bi-monthly billing periods.
If approved, the changes would raise the total bi-monthly bills from $124.60 to $151.66, meaning an annual cost increase of $162.36.
“I don’t think we’re going to see that again in the future unless there are major changes to the way we operate the system,” he said of the large increase.
Council voted unanimously to provide notice of the proposed increases and to host a public meeting on Aug. 24.