Portsmouth Water District Rate to Increase 9.78 Percent

PORTSMOUTH, RI—Water rates for customers connected to the Portsmouth Water and Fire District will be paying more for service after the district's administrative board on Tuesday approved a $4.37 million operating budget.

The district's operating budget increased 13.88 percent for fiscal 2017 and the combined operating and capital budget increased by 12.54 percent, to $4.67 million. Customers will now see a 9.78 percent increase in the two-tier water rate schedule and a 13.6 percent increase in the base charge for a residential meter.

According to a district news release, the increases are necessary to address "several issues" including a wholesale water rate increase of 28 percent applied for by the city of Newport last December.

That increase will take effect on July 1 and the absorption of that wholesale price constitutes 75 percent of the district's total increase, the district said.

The price hikes will also help defray costs for a new staff accountant hired to improve financial management, reporting and to meet new reporting standards required for fire districts.

"Also, due to the increasing age of the distribution system, there has been an upward trend in the cost of system repairs, including a needed $35,000 repair on the subaqueous water main under the Sakonnet River between Portsmouth and Tiverton," the news release stated.

Under the new rate schedule, customers will pay $7.28 for the first 5,000 gallons and $10.71 for all water use over 5,000 gallons per quarter. The district's property tax rate is now .22 cents per $1,000 of assessed value, an increase of one cent.

A house valued at $400,000 would see an increase from $84 to $88 on their property tax bill. Property taxes collected by the district account for less than 13 percent of the district's total revenue and "the use of its authority allows the District to issue general obligation bonds, which offer a more favorable interest rate than revenue bonds, when funding capital projects," the release stated.

Administrative Board Chairman Phil Driscoll said that the increases will help maintain a balanced budget while providing for investment in the system as a whole.

One way to reduce costs is with leak detection efforts to reduce lost water.

"Mr. Driscoll indicated that the Board is working hard to properly maintain and improve the water system, while providing fair and reasonable rates for customers and taxpayers," according to the news release. "Mr. Driscoll also indicated that the Board will continue to ensure that the cost it pays for wholesale water is fair and reasonable by working with Newport Water and intervening in Newport rate filings before the Public Utilities Commission, as necessary."

The district announced on Wednesday that its annual election of officers will be on Wednesday, June 8 at the district's main office at 1944 East Main Road.

The polls will open at 7:00 AM and close at 8:00 PM.

Of the Board's seven seats, the positions of one (1) Moderator and one (1) Treasurer are up for election.

Running for the position of Moderator is incumbent Ronald L. Molleur of 15 Molleur Rd.

Running for the position of Treasurer is incumbent Allen J. Shers of 40 Roger Williams Ct.

As required by the recent change in State Law, voters will be required to show identification to vote in the District’s election.