No revenue for 39 percent of county water

Water districts leaking revenue

By NICOLE CARTRETTE
Staff Writer

Columbus County officials are looking for ways to plug a leak in county water loss that comes from water blow-offs, water stolen from hydrants, and an average of $16,000 a month in adjustments to customers’ bills.

“Blow-offs” refer to hydrants being opened, mostly near the end of a line, to release water that has accumulated too much chlorine because of low usage of water.

Lost revenue

Adjustments to customers’ bills accounted for about 25 million gallons and resulted in lost revenue of about $96,000 from June to November 2006.

The two water districts that fail to generate enough revenue to cover debt service payments and operating costs are taking the hardest hit with adjustments.

In water District II, there were more than $48,000 in adjustments to customer bills over the six-month period. A special tax of nine cents per $100 value is levied on property in the district to help pay the projected debt service of $425,940.

In water District III, adjustments to customer bills totaled more than $42,000 over the six-month period. A special tax of 13 cents per $100 value is levied in the district to help pay the projected debt service of $318,748.

Adjustments in water Districts II and III peaked in June of 2006 with more than $80,000 in combined adjustments made to customer bills during the month.

Millions of gallons

Water losses totaled about 60 million gallons in the six-month period between July 2006 and January 2007 and accounted for 39 percent of all county water produced during that period, according to a memo drafted by Public Utilities Director Leroy Sellers on Jan. 31.

Actual water loss from water blow-offs (to keep chlorine levels at state minimums) and water stolen from hydrants made up about 23 percent of all water produced in the six months, or about 36 million gallons.

Misuse of hydrants

“We are constantly having issues with farmers in the area using the water from hydrants for agriculture use,” the Sellers memo reads in part. “We also have a problem with fire departments taking water from the hydrants to fill swimming pools for citizens of the county.”
Lack of customers

Sellers points out that “the majority of the loss is due to the lack of hook-ups in the districts, especially II and III.

“With fewer customers on the water lines, we have to constantly keep the water moving in the lines. Per state requirement, we have to maintain a chlorine level at the minimum .20 ppm (parts per million),” Sellers explains.

“We need more hookups,” he adds. “There is not enough positive promotion of the water systems to increase our customer base.”

Change rules

Sellers calls for a change in adjustment rules and regulations. “It is much too easy for customers to receive an adjustment on their bill at this time,” the memo reads. “All adjustments should go to the board of commissioners for approval.

“This should minimize the amount of adjustments made during the year and increase revenues.”

Sellers goes on to explain that the staff of the water department is working with the finance department and water advisory board and the goal is to cut water loss back to less than 10 percent.

In another memo drafted to the Board of Commissioners, Sellers and County Manager Jim Varner, Interim Finance Director Leo Hunt makes several recommendations.

Hunt suggests the reconnect fee increase from $15 to $30 and a late fee be charged if the bill is not paid by the due date.

Hunt also recommends service be cut off to customers if they do not pay the bill within five days after the due date, or increase the deposit from $50 to $100.

“Adjustment can be given for leaks only if the bill is three times higher than the average for the preceding six (6) months rate and only once in any given year,” Hunt asks the board to consider. “Have all adjustments approved by the Board of Commissioners, same as taxes.”

Meter all water

Hunt also recommends the county meter all blown off water.

Sellers says the hydrant meters used to measure blown off water cost about $500 per meter and the county would need to purchase at least six of them.

Hunt suggests the county require the Town of Boardman to install a meter per the agreement with the county or the county should install one at its expense and increase water charges to recapture the cost.

Keeping water districts afloat

By NICOLE CARTRETTE
Staff Writer

Residents have been told if more people would just hook on to the water in Districts II and III, special district taxes could be reduced or eliminated. The 9 and 13 cents per $100 value levied on all property in Water Districts II and III, respectively, go toward debt service payments and operating expenses that water revenues alone can’t cover.

At the average usage of 3,000 gallons per month, a customer in one of those water districts pays about $29 per month ($25 for up to the first 2,000 gallons and $4 per additional 1,000 gallon).

WaterDistrict II currently has 920 customers but the potential for 1,659. Based on those figures the district would generate an additional $257,172 a year in revenue if all potential customers with access to the waterlines signed on.

That combined with the $351,000 in anticipated revenue from water sales for fiscal 2008 would total more than $600,000 in revenue. The debt service ($425,940) combined with operating expenses (which includes salaries, maintenance, insurance, among others) is budgeted at $648,360.

Water District III currently has 1,242 customers but the potential for 2,550. If all potential customers would hook up to existing waterlines, that district’s revenues would increase by nearly $900,000 a year.

That combined with the anticipated revenue of $287,000 would total nearly $1.2 million in revenues. Debt service payments are about $318,748. Operating expenses and the debt service are budgeted at $506,617 a year.

A taxpayer with property in water district III valued at $200,000 would pay an additional $260 in special property taxes. At the average rate of $29 for 3,000 gallons the customer would pay $348 a year for county water –a difference of $88.

A property owner with property valued at $300,000 would pay more in the special taxes ($390) than in water fees ($348) at the average rate of 3,000 gallons a month.

A taxpayer with property in water district II valued at $200,000 would pay an additional $180 in special taxes. At the average rate the customer would pay $348 a year for county water – a difference of $168 a year.

A property owner with property valued at $400,000 in water district II would pay more in the special taxes ($360) than water for a year at the average cost of $348.