The Water Authority of Western Nassau County board of directors unanimously approved a proposed 2011-12 operating budget of $13.1 million last Thursday night, representing a 4.84 percent rate increase of $600,000 from the current budget.
Debt service costs from $40.89 million in bonds issued in April 2010 for future capital expenses are the primary reason for the increase, according to Michael Tierney, superintendent of the water authority, who said the debt service costs represented 2.9 percent of the overall rate increase.
“That comes at a cost, and that cost is a layoff or the non-hiring of an employee.” said water authority board Chairman John Ryan, who predicted financial pressure would prompt future layoffs without state-mandate relief.
Payroll costs will rise with a 2 percent salary increase for all water authority employees. Tierney said pension costs would also rise significantly, to $593,900 next year from $427,300 this year.
Ryan said he thought the salary increase, which is effective on June 1 and excludes the water authority chairman, is an equitable one.
“I think it’s very reasonable for these employees in this economy,” Ryan said.
The water authority board members voted unanimously for the salary increase
The Water Authority has more than 28,000 customers, serving a population of approximately 120,000 in the towns of Hempstead and North Hempstead on Long Island in New York.
Those served include the viilages of Bellerose, Floral Park, New Hyde Park, Stewart Manor, South Floral Park; some portions of the villages of Garden City and Valley Stream; the unincorporated areas of Elmont, New Hyde Park and Floral Park Centre; and portions of the unincorporated areas of Franklin Square and North Valley Stream.
Tierney told the water authority members that the seven-year trend in average annual consumption rose slightly from 105,000 gallons in 2010 to 106,000 gallons in 2011 per residential customer. He noted that average annual commercial consumption also increased from 460,200 gallons in 2010 to 464,000 in 2011.
To mitigate the rate increase, Tierney said the water authority is amortizing a balance of $717,000 in its tank painting fund, taking $100,000 from that fund for next year’s budget, reducing the projected increase by 0.78 percent.
Marianna Wohlgemuth, water authority representative for the Town of North Hempstead, said she hoped the water authority would be able to keep rates “flat” year-to-year in its 2012-13 budget.
After the meeting, Wohlgemuth said she the tank painting fund “should be broken into” to hold down rate increases.
The impact of next year’s 4.84 percent increase will translate to a $16 annual increase for residential customers consuming the current average of 106,000 gallons. Based on average usage of 464,000 gallons, commercial customers’ bills will rise $56 for the year.
The water authority is planning to design and install two iron removal plants in Franklin Square and Elmont as part of long-term plan that prompted the 2010 bond issue, Tierney said. It also plans to replace water pipes on Stuart Avenue in Elmont near the Southern State Parkway, and replacement of 12-inch main on Central Avenue in Valley Stream.
