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Why are city officials talking about a water rate increase? |
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It has been said for some time now that the city loses as much water as it pumps. Since 2004, the city has been conducting loss ratio reports (monthly loss ratio reports are available by clicking here) and have determined that in 2006 the city pumped over 744 million gallons of water, billed for over 400 million gallons, and 10 million gallons of other accounted for uses, leaving over 334 million gallons in unaccounted for water loss.
There are a variety of reasons for this unaccounted for use. Three main reasons are the number of aging meters. Currently over 50% of the city's 4500 meters are over ten years, and 64% of those are over twenty years old. As water meters age, the turbines, inside that are responsible for reading the amount of water that passes through the meter, read less water than actually passes through the meter. The second main reason is the amount of leaks and number of leaking fire hydrants. In 2005, the city performed a leak survey to determine the number leaks and amount of water loss. The survey discovered over 94,000 gallons per day of water loss (or 34 million gallons annually). More is expected; however the number of leaking fire hydrants prohibited the company from performing a more accurate survey (click here to view full leak report). Finally, we have been unable to detect the amount of unaccounted for usage, particularly in our city parks that are unmetered.
The true reason city officials are talking about a water rate increase is to improve the infrastructure. Typically the water loss should be approximately 10%, but no more than 15%. The city's 2006 loss of 44% should be unacceptable. As everyone knows the water tower is in need of desperate repair. In 2004, the city performed an inspection on the tower. From the inspection report it is discovered that over $600,000 (in 2004) worth of work needed to be completed on the tower. City officials have looked into replacing the 50+ year old tower (originally built in 1956) with a new tower at a cost of just over $1 million or rehabilitating it. The new tower would have a life expectancy of seventy-five plus years if it is properly maintained. The rehabilitated tank could last another fifty years if properly maintained. (click here to view evaluation report)
City officials have sought grants for the repairs; however, the grant dollars for infrastructure improvements are sparsely available. The State of Indiana does administer a federal grant program knows as Community Focus Funds (CFF). To qualify for the 90% grant the funds must serve a majority of low to moderate income. Based on the 2000 census data, the city's low to moderate income ratio was approximately 49%. The city has attempted to conduct two income surveys to determine the actual low to moderate income ratio, which city officials believe to be above the required 50%. City officials have also attempted to obtain a low interest revolve loan from the State Revolving Loan Fund, but the city's financial advisor could not certify the city's ability to repay the loan with the current financial status.
2004 Monthly Water Loss Ratio Report 2005 Monthly Water Loss Ratio Report 2006 Monthly Water Loss Ratio Report 2007 Monthly Water Loss Ratio Report
2006 Year Ending Financial Report (Cash Basis)
Combined Water and Sewer Rate Survey
Leak Survey completed October 6, 2005
750,000 Elevated Tank Evaluation completed March 22, 2004
Last Update: Saturday, September 01, 2007 03:16 PM |
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