State College Borough Water Authority customers may see a four percent rate increase in 2011 — the authority’s first rate increase since 2008.
The authority administration has proposed the increase, which would amount to an additional $12 a year for the average residential customer, said authority Executive Director Max Gill. The authority’s current water price is $3.80 per 1,000 gallons.
Gill said the additional revenue would support ongoing improvements in the system, such as new water mains and service lines, as well as maintenance of water storage tanks and treatment facilities.
The rate increase also is driven by ‘several potentially high-cost items’ in the budget, including employee health insurance and energy expenses.
‘What we’re trying to do is, rather than wait to a point where we have to increase rates by six, seven or eight percent — it’s been the board policy to try to stay ahead of the increasing expenses and institute smaller rate increases,’ Gill said.
Among public water systems, the State College authority has some of the lowest rates in a 100-or-so-mile radius, he estimated. He said the authority benefits from having no debt and from an abundant natural supply of high-quality water.
Another good sign for the authority: Per-customer water usage is actually declining, thanks to conservation efforts, Gill said. The average residential customer in 2001 used 152 gallons of water each day; this year, the number has fallen to 137 gallons.
‘It’s a good sign, obviously, for conservation,’ Gill said. ‘As the region continues to grow, there’s going to be increasing demand on the wells. That (usage decline) gives us more breathing room, so to speak, for new development.’
The authority’s proposed budget for 2011 is balanced, with anticipated expenses about on par with projected income of $6.59 million. The seven-member authority board is expected to vote Dec. 16 on the budget, including the four-percent rate increase.
If approved, the new pricing will take effect April 1. All customers will receive notices by mail, Gill said.
He said the public is welcome to comment on the proposed budget. Letters may be sent to the State College Borough Water Authority, 1201 W. Branch Road, State College, PA 16801. Customers also may call the authority at (814) 238-6766 or attend the Dec. 16 board meeting. It’s scheduled for 4 p.m. in the authority building on Branch Road.
The water authority counts 37 employees and serves customers in the borough and parts of Benner, College, Harris, Halfmoon, Patton and Ferguson townships. More than 67,000 people rely on the water authority and use an average of five million gallons a day.
