Potential water, sewer charges challenged by users

Sandra Hansen
Posted 8/16/17

Rates consultant Carl Brown of GettingGreatRates.com drew a large audience the evening of Aug.10 for his presentation on proposed rates for using the City of Torrington’s waste water and sewer system. His recommendations drew an even greater negative resp

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Potential water, sewer charges challenged by users

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TORRINGTON – Rates consultant Carl Brown of GettingGreatRates.com drew a large audience the evening of Aug.10 for his presentation on proposed rates for using the City of Torrington’s waste water and sewer system. His recommendations drew an even greater negative response.
Hosted by the City of Torrington, representatives and users of the South Torrington Water and Sewer District, as well as those of the West Highway Water and Sewer District, sat through a nearly three-hour presentation before voicing their concerns with Brown’s conclusions.
Opening the meeting, Torrington Mayor Mike Varney said a consultant was hired because, “We really need some help to find a fair rate structure that we can all agree on.”
Rate changes are necessary, he said, to cover costs of serving the city and the adjoining areas.
Brown said he had worked to find a way to raise the necessary funds and do that in a way that users would like.
In his presentation, Brown discussed, among numerous other issues, unit charges, rate calculations, and most importantly, what effects new rates would have on customers.
A top issue was the cost-to-serve rate, necessary to cover expenses to those who incur them, and the fixed costs, such as billing, postage and other variable costs.
He also addressed the difference between serving the water and sewer districts and serving the regular in-city customers. The districts contested his numbers claiming they own their systems and do their own billing.

Brown also recommended setting rates on a formula established on possible
inflation.
“You don’t want history to set your rates,” he cautioned, adding that rates might seem extremely high now, but would level out on the fifth year. In addition, if income during the first few years exceeds expectations, it could be possible to keep rates lower in following years.
Numerous tables were presented, covering multiple possibilities for rates to serve customers. However, the main concern by representatives of the West Highway Water and Sewer District, and the South Torrington Water and Sewer District, was that they be treated fairly. That when rates are established, the districts be included in the decision making and that the fact that they own their systems and do their own billing be considered when setting rates.
Voicing the concerns of several people attending the meeting, Michael Schmitt of Torrington Livestock Markets said, “The rate structure differences (in the proposal) cause turmoil. There need to be changes.
“There are too many moving parts when it comes to classification.”
Brown explained that one factor influencing the proposed rates was the inflation rate. “It’s my experience that water and sewer usually are two times higher than the regular inflation” and are influenced by more than health insurance, and increase faster, in part because of the equipment and materials used.
Representing the West Highway district, Rodney Girmus read a statement that addressed the City’s failure to follow an Intergovernmental Agreement signed by the city and the South Torrington District, the West Highway District and Goshen County on Sept. 8, 2008. The Intergovernmental Agreement committee was to be involved in an annual review of sewer flow, metering and rates of the sewer system. And to make recommendations to the Torrington City Council as to any issues related to the sewer system.
Girmus said West Highway had offered to pay for part of Brown’s study, so they could participate in developing his recommendation, but had not been included. He added that West Highway hopes to be included in reviewing the sewer rate study and evaluating its impact to the West Highway district users.
“It is important that the study develop the cost of operating the wastewater plant, where West Highway uses 5-6 percent of this facility,” he said. “West, understanding these costs, will provide us an insight into the city sewer system expenses and West paying its fair share of these costs.”
Brown’s recommendations for water rates are based on water meter size in inches. To begin with, a minimum would be $33.95 for 4,000 gallons. Out of city rates could be as high as $694.994 for the same amount. In-city sub-customers would be $9.96, and out of city sub-customers rates would be $12.45.
Sewer unit charges, also based on a variety of sizes and other variables, for the first base rate adjustment would be $3.06 per 1,000 gallons. Out-of-city rate and Torrington Livestock would be $3.83 per 1,000 gallons.
The study will be reviewed by the city council and other parties involved, with some new rates expected to begin
Nov. 1, 2017.
Numerous variations and potential charges are included in the study, which can be obtained by contacting the city at 307-532-5666.