Water rate to increase
For the first time in 20 years, Fairchance Borough water customers will see an increase in their bills. The state Public Utility Commission on Thursday approved a $1 monthly rate increase that the borough requested in March. The new rate, which takes effect today and will appear on customer bills in July, is $19.50 a month for the base usage of 3,000 gallons and $4.25 for every additional 1,000 gallons of water.
Residential customers using 36,000 gallons a year will pay an average of $234 a year, which is a 5.4-percent increase.
Set in 1989, the old rate was $18.50 a month for 4,000 gallons and $3.75 for every additional 1,000 gallons. The average annual residential bill was $222.
Borough council President Herbert J. Myers said higher rates are needed to repay the loan that was used to install a filter and computer operating system at the water treatment plant.
Borough council sent letters to the 1,139 residential customers, 46 commercial customers and 21 institutional customers in the borough and part of Georges Township earlier this year telling them council asked the PUC to approve the rate increase.
In a letter to the PUC requesting permission to raise the rate, the borough said the increase is needed to cover the rising costs of treatment chemicals, complying with regulations and wages and benefits.
Revenue was $362,808 in 2006 and $370,940 in 2007, according to information the borough sent to the PUC to justify the request for the rate increase.
In 2007, employee wages and Social Security and Medicare payments totaled $99,920 and benefits totaled $68,733. Those numbers cover the water plant foreman and laborer, a clerk/meter reader and two other laborers.
Long-term debt includes a $320,000 loan with a 4.2 percent interest rate from National City Bank, a $246,117 loan with 1 percent interest from the Pennsylvania Infrastructure Investment Authority that is due to be paid off in January 2010 and a $115,500 PENNVEST loan at 1 percent interest that was scheduled to be paid off in May.
The borough owns and operates two reservoirs and a treatment plant that has a 500,000-gallon storage tank. The Askon Hollow Reservoir was built in 1962, the Cave Hollow Reservoir was built in 1949 and the plant was constructed in 1986. A $327,550 overhead storage filter and computer operating system was recently installed at the water plant.
The PUC’s bureau of fixed utility services and office of trial staff reviewed the borough’s request and issued a recommendation of approval for the full PUC board.
PUC board members voted 5-0 in favor of the borough’s request.