Onset Water Commissioners cite a maximum 25.5% rate increase

May 12, 2011

At a public hearing Wednesday the Onset Board of Water Commissioners told a group of six citizens in attendance it is proposing an estimated 25.5% rate increase for Onset water users.

That is up from the 20% hike the Commissioners originally estimated last week.

The Commissioners said the 25.5% is needed to cover the expenditures cited in the district’s proposed Fiscal Year 2012 Budget.

 

Board of Water Commissioners Clerk Brian O'Hearne said the additional fees proposed are adjusted to cover the costs of items in yet-to-be voted on articles listed on the Onset Fire District warrant, including $17,000 to hire part-time help to monitor meters more closely.

O’Hearne said if the financial articles that could potentially increase district costs do not pass by voters at Monday’s District Meeting rates would not increase by the full 25.5%. However, some rate increases will be needed regardless.

“We have to increase the rates,” O'Hearne said at an earlier meeting. “We can not use the surplus [fund] anymore,” to support the District’s operational costs.

All of the operating costs related to the Onset Water Department are financed by the sale of water. The District collects its money from approximately 3,000 metered homes. And, while the income from these meters has remained the same for years, the District’s expenditures have continued to increase, according to O’Hearne.

Board of Water Commissioner Chairman Mark Maxim said at a previous Commissioners meeting the rate hike is needed to cover the increasing cost of employee health insurance and retirement funding, among other bills.

All the employees of the Onset Water District and the Commissioners get 99% of their healthcare covered through the organization, according to Maxim.

O’Hearne added the new state law requiring health insurance coverage be expanded to include employee's children under 26-years-old who are still in school will cost the District upwards of $16,000 in the 2012 Fiscal Year.


The last time the District increased water rates was in 2006.

The Onset Fire District annual Meeting will be held on Monday, May 16 at 7:30 at the Dudley L. Brown VFW Post in Onset.

Since the rate increase is not an article of the warrant, a final vote by the Commissioner to adjust the rate increase will take place on Thursday, May 20 at the Onset Water Department office building located at 15 Sand Pond Road in Onset.