3.25% Rate Increase Effective 3/1/15
The BCWA Board approved a rate increase of 3.25% for the general budget, effective 3/1/15 (the beginning of the fiscal year). The FY 2016 budget was approved by the Board on January 14th, following a public hearing. The Operations and Maintenance (O&M) budget was increased by 1.6%, with major impacts on the budget described below. The balance of the increase provides for capital projects and required reserve funds for Infrastructure, Stability Fund and OPEB (Other Post Retirement Benefits).
Impacts on the O&M budget for FY2016 resulting in a 1.6% increase:
- Voluntary increase of pension contribution to Board recommended rate of return for an increase of 7.7% over FY2015 budget.
- Health insurance increased 10.3%, but resulted in only a 3% expense increase due to new employees (younger) and savings on retiree benefits.
- 14.4% decrease in Customer Service expense due to new computer system reduction in cost of printing and mailing of bills.
- 4.1% decrease in Operations labor due to contractual salary reduction for new Water Utility Operators.
- 175% increase in maintenance of dams, reservoirs and rights-of-way (transmission mains) in Operations Maintenance expense.
Major Capital Projects for FY 2016
- Water Main Replacements: Foote St., Princes Hill, Barrington; east Child St. dead end main interconnections, Market St (east of Metacom),Warren; dead end interconnections, Bristol.
- Meter replacement program
- Pump station rehabilitation: Nayatt Rd and Metacom stations
- Barrington Tank mixing and treatment system