The years, even decades, of low rates – and the accompanying low maintenance – for water and sewer systems under the Eatonton-Putnam Water & Sewer Authority (EPWSA) are undergoing a hard look.
Rate increases for customers seem inevitable by next spring, given the current inflationary environment and the capital needs for rehabilitation of old lines and for improvements in the system.
The questions discussed at last week’s monthly meeting of the EPWSA board focused less on whether, and more on when, how, and how much of an increase will be required.
The situation is not in crisis mode, but more like a pay-small-now or pay-big-later mode. On the plus side, capacities in the two systems currently pose no problem, according to Judd Doster, who spoke at the meeting via telephone hook-up.
The question is more about how to fund the estimated $25 million needed over the next 10 years for rehabilitation and replacement of old lines, valves, hydrants, lift stations and such.
“Assets have a shelf life,” Doster said. “My goal is two-fold,” he continued. “We have got to address our (10-year) capital needs. But I also want the board to look 20 years down the road and create a structure (for forecasting needs and setting rates), as opposed to putting a wet finger in the air. That’s part of the reason we are in this position now.”
Board member Mike Rowland added, “it would be irresponsible not to think about taking care of the system we have.”
Doster favors a 10-year plan that takes into account not only the consumer-price index (CPI) for inflation, but also capital needs. Dubbed “CPI-plus,” such an approach could translate into a double-digit rate increase next spring.
So, a push for a long-term “structure” should not be iron-clad.
“Our most at-risk customers are the ones most affected by these numbers,” Doster added.