NEW SCOTLAND — The town board has increased water rates 17 to 38 percent for the Clarksville and Font Grove Road water districts.
"We passed it with the intention of the new rate going into effect immediately," Councilman Richard Reilly told The Enterprise of the board’s July 13 vote.

He said the board wanted the new rate to apply to the next billing cycle. Supervisor Ed Clark asked the town’s attorney to look into it, to see if it were possible.

The potential problem, Reilly said, is that some of the water to be billed in the next cycle has already been consumed, so the town may not be able to apply the new rate retroactively.
"Then we might have a real budget issue," Reilly said. And to make up for the lack of needed revenue, the board may have to have another vote later on to increase the rate again, he said.

The town raises water rates from time to time, because rates are initially based on estimates. Water rates have increased in the past because the neighboring town of Bethlehem is raising its rate, and Bethlehem supplies water to a number of New Scotland water districts.

Clark said it’s hard to estimate rates for the Font Grove Water District because it has only 17 people, and if one person reduces his water usage, it greatly affects the total revenue of the whole district.

There are a lot of factors in determining the water rate, including operation costs. Reilly mentioned the unpredicable cost of electricity as another reason why the town now needs more revenue from water users.

Town Attorney Michael Mackey told The Enterprise that the state’s comptroller issued an opinion in 1980 for Village Law, that rate increases could not be applied retro-actively; the same principle can be applied for the town, he said.

In response to Mackey’s findings, Clark told The Enterprise that, right now, he doesn’t think the board will have to vote on another rate increase, and that the new rate, he hopes, will be enough.

While the increase starts right away, users won’t get billed until the next six months, Clark said.

Water bills are sent out twice a year, he said. Readings on the water meter in the Font Grove Water District were taken July 20, and for Clarksville, the next water meter reading will be Aug 20, Clark said.

These readings will show how many gallons of water were used over the last six months. For this summer’s bill, the old rate will apply. However, any water used after July 20 in Font Grove and after Aug. 20 in Clarkville will be charged at the new rate. So, the new increase will be seen in the bill mailed in the winter.

The rates

Each user in the Font Grove Water District has to pay for a minimum of 5,000 gallons, which will now cost $125, an increase of $25. Then, for every 1,000 gallons used beyond that, residents will be charged $11 per 1,000 gallons, instead of the old rate of $8.

The Clarksville Water District has a 15,000 gallon minimum, which used to cost $52.50, but now costs $63.75.

Clarksville has a tiered billing system for the larger users.

Each 1,000 gallons over 15,000 costs $4.25, up from $3.50 per 1,000.

After using 60,000 gallons up to 120,000, the new rate is $4.50, up from $3.85.