HomeMy WebLinkAboutBP2013.pdfBolton Point, Growth, Capital Projects, and 2013 Water Rate
Since 1976, the Southern Cayuga Lake Intermunicipal Water Commission (SCLIWC or Bolton
Point) has been producing up to 1 billion gallons per year of exceptional drinking water and
reliably delivering it to the Towns of Dryden, Ithaca, and Lansing and the Villages of Lansing
and Cayuga Heights, the Commission’s member municipalities. Bolton Point water consistently
exceeds Health Department standards and has often won regional taste tests.
Despite steady growth in the number of customers and the estimated 27 billion gallons of water
produced, much of the 37-year old equipment and infrastructure is still in service. After a year-
long review of equipment and infrastructure condition and life expectancy, SCLIWC has
developed long-range plans for replacements or upgrades of the aging components of the water
treatment and transmission systems. This year, a 900,000 gallon storage tank is being built and a
section of 20-inch diameter transmission main replaced. In 2013, a 1.5 million gallon storage
tank and another section of transmission main will be replaced. By adopting a long-range capital
plan, large fluctuations in the water rate can be avoided and the cost of debt service reduced.
In addition to aging infrastructure, growth of the Bolton Point-Municipal Water System has
added hundreds of valves and hydrants since 2002. Field staff has not increased since then. The
Commission has created a Water Maintenance Specialist position to focus on valve and hydrant
maintenance to assure fire protection and water delivery reliability, to be filled in 2013. That
position and additional equipment required adds $105,750 (salary, benefits, and equipment) to
the 2013 budget and $57,000 (salary and benefits only) in future years.
From 1996 to the present, there were seven years in which the Bolton Point water rate did not
increase and two years when the rate decreased substantially. Over these 16 years, the average
annual SCLIWC rate increase was 1.7% while the Consumer Price Index increased an average of
2.9%. Planning now for necessary capital replacements or upgrades will help stabilize rate
increases and minimize delays in replacements or upgrades in the future.
In 1996, the Bolton Point water rate was $2.55 per 1,000 gallons. Now, the need for capital
expenditures will bring the rate to $4.00 per 1,000 gallons in 2013 – still less than the $4.18 it
would have been if the cost had kept pace with inflation. For residential customers using up to
10,000 gallons of water per quarter, a quarterly bill will increase by $8.50. This increase does not
include any increases to the municipal water rate. The Commission is studying alternatives to
the 10,000 gallon/quarter minimum billing structure in order to reduce the impact on residential
customers by ensuring that low volume users are not overpaying for fixed costs.
The Commission was created to provide high quality water at the lowest possible cost. The staff
and Commissioners believe that the 2013 rate increase is necessary to ensure that we can
continue to meet both of those goals.