Latest news with #waterrates
Yahoo
09-07-2025
- Business
- Yahoo
Chesapeake's water, sewer rates will see 5% bump in January
CHESAPEAKE — Water and sewer customers in Chesapeake can expect the rates they pay to go up by nearly 5% beginning in January — a move city leaders believe will help keep up with routine maintenance and improvement projects. Chesapeake City Council on Tuesday approved an additional 2% bump to the rates charged for water and sewer services, adding on to the 2.9% already approved for the current budget. That means customers will see a 4.9% bump in their rates in January, and they can expect a similar hike in future years. Chesapeake Public Utilities Director David Jurgens told The Virginian-Pilot that an average single family using 5,000 gallons of water can expect their bimonthly bill to be about $281 starting in January. That includes all charges on the bill: 60 days of water and sewer usage as well as increases implemented by the Hampton Roads Sanitation District. That's also up from the average monthly bill of $264. Council members were briefed earlier this year on a rate sufficiency utilities analysis that suggested increases to maintain reserve balances and debt service coverage through fiscal 2035 due to increased construction costs and deferred capital needs for a host of utility-related projects. Super Girl action sports festival expanding to Virginia Beach in 2026 Chesapeake leaders to consider more water, sewer rate increases New Camp Morrison plan could turn Newport News WWI-era industrial park into housing 'Make a better life': Fort Monroe naturalization ceremony welcomes nearly 100 new citizens Norfolk housing authority chooses a developer for Calvert Square and Young Terrace The utility fund faces an estimated $61 million in annual capital needs, with debt financing making up two-thirds of costs. The analysis suggested at the current rates, the reserve fund balance would be completely drained by fiscal 2035, and debt service coverage would fall below target by fiscal 2029 and in default territory by fiscal 2035. Council's vote Tuesday, which was only opposed by council member Ella Ward, also established a multiyear plan to increase rates by 4.9% through fiscal 2032, which puts Chesapeake in line with Portsmouth's established 5% annual rate increases. City staff have said routine maintenance costs have 'far outpaced' the rate increases implemented, creating a backlog of critical maintenance and capital projects. Without the increase, the city runs the risk of critical failures in an aging water and sewer system. Ward wanted to allow more time for the public to digest and weigh in on the proposal, but council moved forward with the vote after a handful of people spoke in opposition at Tuesday's meeting. A previous presentation to council members showed that the 4.9% annual increase will generate $73.6 million for the multiyear capital improvement plan, allowing the city to address several improvements and upgrades to existing infrastructure and for projects to replace a water main at Bainbridge Creek Crossing and a sewer main on Freeman Avenue. Natalie Anderson, 757-732-1133,
CBC
08-07-2025
- Business
- CBC
St. Peter's water utility says minister's intervention in rate hike application 'alarming'
A Richmond County utility says a 19.5 per cent increase in water rates is needed to cover costs, but Nova Scotia's municipal affairs minister has taken the rare step of intervening in a rate application, saying the hike could amount to an "unmanageable burden" for people already facing affordability issues. The St. Peter's, Samsonville and Area Water Utility has a public hearing on Wednesday to review proposed water rate increases in each of the next three years. Barry Culligan, a St. Peter's village commissioner and chair of the water utility, said a four-page letter from Municipal Affairs Minister John Lohr that was filed with the Regulatory and Appeals Board was more than just a surprise. "It just seems really odd on their behalf to have stepped into something that's all regulated," Culligan said. "This communication from the minister of municipal affairs is alarming to us, because it's a user-pay system. If they were successful in intervening and to have that stalled or reduced, well, that doesn't bode well for the utility." Lohr declined multiple requests for an interview. In the letter, he said the proposed St. Peter's water rates, if approved, "will result in a significant residential rate increase of $168.15 (19.5%) … at a time of heightened concern around affordability and cost of living for Nova Scotians, including for residents of the St. Peter's, Samsonville area." Despite efforts, affordability a challenge: minister According to the utility's study posted on the regulator's website, the St. Peter's increase would not be $168.15 — it would be an increase of $27.48 on a $140.67 bill, which would then make the bill $168.15. A hike of $27.48 represents 19.5 per cent of $140.67. Also in the letter, Lohr said the province has taken several steps to make life more affordable for Nova Scotians, but despite that, "significant affordability challenges remain." He also cited recent Nova Scotia Power rate increases. "An increase in water service rates will serve to exacerbate this strain and has the potential to place an unmanageable burden on some of the province's most economically vulnerable citizens," Lohr said. 'Advocate for Nova Scotians' In an email, a department spokesperson said the letter was written out of concern for ratepayers. "We don't often intervene, but where utilities in Nova Scotia are raising rates by large amounts, we will make our position known and we will advocate in the best interests of Nova Scotians," the email said. The department did not address the inaccurate increase cited by the minister. Instead, it said the minister simply wants the cost of living taken into account whenever high rate hikes are proposed. Public hearing on Wednesday The Regulatory and Appeals Board has scheduled a hearing on the utility's proposed water rate increases for 1 p.m. Wednesday at the United Church Hall in St. Peter's. Utilities usually conduct rate studies once every three to five years, but many skipped the cycle during the pandemic. Culligan said the St. Peter's water utility has not had a study done since 2017 and it has been running deficits for a number of years. It has also not been accounting for the full depreciation costs of its infrastructure, but the regulator now requires the utility to set aside enough money to replace the treatment plant and pipes in the future. 'We understand money's tight' Culligan said all those things mean water rates have to increase to cover the costs of operation and future capital spending. "We understand that money's tight. I mean, we cringe at the whole conversation of doing this," he said. "Nobody wants to see the rates go up, but the other thing I also cringe at is not doing what we're responsible for doing, which is running a utility that is running in the black." Culligan said if the province would revert to the previous policy of allowing for less depreciation, the St. Peter's utility could lower its rates. "If the Department of Municipal Affairs is doing this, I'd like to think that they also have part of a solution for us, because otherwise, they're basically sinking the utility."
RNZ News
20-06-2025
- Business
- RNZ News
Hawke's Bay residents outraged over council's proposed water rate hike
The hike is due to a proposed regional water entity to replace the Three Waters Policy. Photo: RNZ/Alexa Cook A group of Central Hawke's Bay residents are accusing the council of causing 'geriatric poverty' because of a proposed water rates hike of $5000 dollars per household over the next decade. In the quiet township of Takapau, a group of angry residents have banded together to fight the council's proposed water rates increases. (Left to right) Takapau residents Carl Tippett, Owen Clough, Lincoln Taylor, Christine Ross, Carmel Thompson, Kim Mathewson and Diane Sweeney. Photo: RNZ/Alexa Cook Kim Mathewson told RNZ she's outraged about the entire council process, and fears the devastating impact it'll have on their community. "There will be geriatric poverty here. That's really sad when someone thinks 'can't turn on the heater because of the power bill, I can't buy food because I have to buy the rates'. What kind of country are we living in? "Does this council have any social conscience? Because the way it is right now it appears they don't," she said. Kim has crunched the numbers on her own rates bill and said if, or when, water rates reach the council's forecast of $7000 a household by 2035, it will simply be unaffordable because it takes the total annual rates bill to about $9,500. "That's $180 a week per household of rates alone, plus $100 insurance, plus your power bill... if you're on a pension you're pretty much going to be left with $50 a week if you're lucky. No one can afford that," she said. Lincon Taylor owns Takapau business Taylor Made Gates and said under the CHBDC proposal he's facing a water rates rise of more than $25,000 a year for his business and the four properties he rents to his workers. "It's a huge increase. I find it hard to understand how the figures add up, what the council is trying to achieve, and who is paying for it," Taylor said. He said the regional model was probably needed, as Hastings and Napier could help make it an economy of scale for borrowing money, but worried about smaller rural communities like his. "I hope it doesn't turn around and bite small communities too hard because they can't afford it. "I'm proud of the fact that Takapau township has become a retirement village effectively... but they are the ones who are going to be affected the most. To add $4000 to their rates is going to be horrendous," Taylor said. Under the CHBDC proposal, Taylor Made Gates owner Lincoln Taylor estimates his water rates bill will increase by about $25,000 a year for his business and the rental properties for his workers. Photo: RNZ/Alexa Cook Carmel Thompson manages the CHB budget service and helps over 300 families and pensioners with their spending. But with the inevitable water rates increase, she's concerned about how her clients - both homeowners and renters - will make ends meet. "We have a lot of elderly women on our books and those living off only the pension are already struggling with the rates so I hate to think what will happen if we end up with these huge water rates, I'm not sure how these people will manage. "The elderly on pensions are our new poor. Everyone in the community is suffering though, it's really really sad," Thompson said. Fellow Takapau resident, Carl Tippett agreed. He moved from a rural property into the village of Takapau, but was now looking at moving away. "This is the beginning of the death of small towns right throughout New Zealand. If this goes ahead then people like us, over 65's, will not be able to afford to live... I feel angry. "We're at the end of the rope not the beginning. Frankly it's too late... there should have been a much longer consultation," he said. Owen Clough felt the council and government had failed to properly consider the huge impact on its residents if water rates skyrocket over $7000 by 2035. "There's no social thought about what is going to happen. No one has sat down and said 'can they afford afford this, can the country afford this?', because the answer is no," he said. Takapau pensioner Diana Sweeney was frustrated by the same issues, and questioned whether CHBDC was doing enough to lobby the government for help. "The lack of responsibility to this community by previous councils, the buck has to stop somewhere. The council needs to be our voice, we are a small town and we count. They need to spend our money responsibly," she said. A feeling echoed by Christine Ross, she's also part of the group and is one of 208 people who made submissions on the 'Local Water Done Well' proposals. "I can't afford to pay an increased rate on a single pension, it'll be almost 50 percent of my pension each week being spend on rates and I don't have it. "I won't be able to afford to live here, or anywhere at this rate. I'm horrified, I don't understand why the council isn't working for us, to help us," she said. CHB Mayor Alex Walker told RNZ the 'Local Water Done Well' was government's policy and framework. "The costs outlined in the current model are confronting, however council is actively working on options to reduce this cost, as outlined in the report to Council on 5 June. "We take every person, in every community seriously. Takapau was the first community in the district to get major water treatment plant upgrades in 2019," she said. CHBDC Mayor Alex Walker. Photo: RNZ / Alexa Cook CHBDC said it had the "perfect storm" of water problems in the region, with years of underinvestment, increasing regulations and an intimidating list of three waters infrastructure that needed upgrading or replacing. 85 percent of total council debt is related to the three waters programme with 25 percent of the drinking water piping network and 40 percent of the wastewater piping network at high risk of failure. Two water reservoirs are over 100 years old and need replacing, seven water treatment plants need $47 million of upgrades, and six wastewater treatment plants are not compliant and urgently need upgrading to the tune of $112 million. Central Hawke's Bay residents feel their council hasn't been transparent about the forecast future water rates hike. Photo: RNZ/Alexa Cook The Mayor said the council had consulted with the community for five weeks and had 10 meetings including two in Takapau. "Affordability. Affordability. Affordability. It is our key challenge and Local Water Done Well does not convincingly deliver that for us yet. Our community can see it and they are, quite rightly, not happy," Walker said. She said the council was continuously talking to government about the district's challenges and opportunities. "We have made multiple approaches to government, including seeking financial support and leading early work across the region on the Hawke's Bay Model in 2019. "Local Water Done Well is the government's approach to address the challenges districts, like ours, face which sets out that ratepayers not government pays for water assets like any other utility, such as electricity or gas," she said. Residents don't just have an issue with the cost, but also with what they said was a lack of consultation with residents over the massive water rates hike being proposed. Kim Mathewson told RNZ the council had known about the proposal since December, but only informed residents in May. "They're not being transparent right now and presenting all the figures. The information they gave us at the community meeting was like a power point presentation for a business, it didn't give you the facts. "It didn't highlight the $7000 increase and it was so small at the bottom of the page... to me that's not being transparent... it's being dishonest," she said. But mayor Alex Walker said the council had been transparent, and the financial rules presented in December have rapidly changed and are no longer correct. "That we were approaching consultation has been flagged in the media, and the regional work towards LWDW has been reported on repeatedly over the last few years. "We have had constructive conversations with people across the district. Most people are aware we are fighting for them, not with them, to make the district a better place and figure out an affordable solution," Walker said. However, residents want to see CHBDC lobby the government for more funding, to try and reduce the burden on ratepayers. "They have to fight the fight with the government. I've said to them: 'when you first saw this why did you not come to us, we are your biggest ally and you chose not to use us'. "We could have been fighting this fight two years ago. The consultation period has been too short, but I do know it's been the same for every community," Kim Mathewson said. Under the new 'Local Water Done Well' scheme, the Central Hawke's Bay District Council consulted with its community on three options: A regional controlled organisation (its preferred option), a stand-alone district council controlled organisation or an in-house delivery unit. However, under the scheme there are also two other options that weren't presented to CHB resident; a mixed council and consumer trust owned model, and a consumer trust owned organisation where assets are transferred from council to a trust. "They should have showed us all the options and presented them much better," Kim Mathewson said. However, CHBDC said it was only able to legislatively comply with three options, which was what it presented to the community in the Consultation Document, and this was explained on its website. Having now heard the public submissions on the proposed options for water services, the council will deliberate these at its meeting on July 3rd. All councils have to submit a 'water service delivery plan' to the government by September 3rd 2025. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Yahoo
31-05-2025
- Business
- Yahoo
County residents with high water rates to get new company
CUMBERLAND — Although Allegany County officials recently talked to Maryland Water Service about significantly high rates, they just learned the company has been sold. Thursday, Allegany County Administrator Jason Bennett said his office a few weeks ago met with Maryland Water Service representatives to discuss monthly water and sewer bills that average about $350 and have reached $650 to $900 for some customers in Bel Air, Pinto, Glen Oaks and Highland Estates. 'We ... asked some pretty pointed questions,' Bennett said. County officials received some answers but were 'left with more questions,' he said. Wednesday, the company 'reached out to us and shared ... that system has now been sold,' Bennett said, adding that the county has few details but was told the new owner is American Water Service. 'From what we know it's going through the regulatory process,' Bennett said. 'Which means, back through the (Maryland Public Service Commission) and back through federal agencies as well.' The county does not know 'what it will do to rates,' he said. 'As we learn more, we'll continue to share.' TransactionMaryland Water Service is a Texas-based Nexus Water Group company. A press release on the American Water website Thursday stated the business 'has agreed with Nexus Regulated Utilities LLC, a subsidiary of Nexus Water Group Inc., to purchase multiple water and wastewater systems located in eight states for a total of approximately $315 million, subject to adjustment as provided for in the purchase and sale agreement.' The acquisition 'would add nearly 47,000 customer connections within American Water's existing footprint in Illinois, Indiana, Kentucky, Maryland, New Jersey, Pennsylvania, Tennessee and Virginia,' the release stated. 'The completion of the transaction is also subject to the satisfaction or waiver of various conditions, including the receipt of all required regulatory approvals and other customary closing conditions,' it stated. 'The estimated closing will take place by or before August 2026.' The Cumberland Times-News was unable to confirm Thursday before press time whether the sale includes the Allegany County Maryland Water Service customers. BackgroundIn March, Bel Air resident Larry Smith led a meeting of roughly 100 folks to discuss their inability to access affordable and clean water. Participants came from Bel Air, Pinto, Glen Oaks and Highland Estates, and gathered in a large room above the Cresaptown Volunteer Fire Department. Many discussed extreme conservation measures to reduce costs of their water and sewer bills. The group's water and sewer bills, which come from Maryland Water Service, are among 'the highest in the nation,' Smith said at that time. In April, Allegany County Director of Public Works Adam Patterson said Maryland Water Service buys its water from the county, which purchases the water from Cumberland. 'The cost that we purchase from Cumberland ... we mark up and then that (pays the county's) transmission cost,' he said. 'What I'm seeing is (the water company officials) then mark it up again.' The commissioners at that time agreed to arrange a meeting, requested by the local Maryland Water Service customers, with county, state and federal delegates. ReactionThursday, Smith said he hopes the meeting he and other Maryland Water customers requested earlier this year will still happen. 'There must be a solution beyond private water for these communities,' he said, adding that the current model is economically unsustainable. He talked of hardships the customers face due to their high water bills. Some folks have to share bath water, and others must choose between paying for prescription medications or water, Smith said. Many have poor quality of water that requires significant filtration methods, he said. The water problem will 'continue to mean devaluation of property values,' Smith said. 'Whether it is Maryland Water Service or a new company that bought MSW, we look forward to the commissioners honoring their commitment to the nearly 1,400 people who requested a meeting,' he said. 'We're grateful to the commissioners in advance,' Smith said of the elected officials' pursuit of the meeting.
RNZ News
14-05-2025
- Business
- RNZ News
'This is another insult' : Water rates to triple in Central Hawke's Bay
Photo: 123rf Water rates in Central Hawke's Bay are set to triple over the next decade, and angry residents are wondering how they are going to pay. By 2035 Central Hawke's Bay residents connected to the council's water supply could see an increase per household from about $2500 a year to more than $7000. The hike is due to a proposed regional water entity under the replacement for the Three Waters Policy. The new 'Local Water Done Well' scheme sits alongside legislation mandating councils decide, along with their communities, how it meets the new standards government has set for water delivery and quality of infrastructure. Bob in Waipawa is shocked by the figures, he told RNZ that it is simply unaffordable for so many. "It's extreme - and it also means there must have been a significant failure. It's unheard of - and as if the cost of living isn't already through the roof. "We probably can weather it, we'll cut down on any extras.. but for people who can't weather it, it will really badly impact them - anyone on fixed income such as a disability or pension," he said. Fellow resident Debbie Stewart was also worried. "I think it's disgusting. We have very high rates here, the second highest in New Zealand and we get nothing for it - so this is another insult. "You'll notice a lot of houses for sale right now, people are moving because of rates being hiked up all the time. It used to be a cheap option to live here, but now we pay more rates than Hastings," she said. Debbie Stewart Photo: RNZ / Alexa Cook Another resident, who did not want to be named, shared Bob and Debbie's fears. "I'm quite concerned about it, I think people are struggling already just paying their rates fees as they are.. and if they're projected to rise it's just going to take more money out of people's pockets," he said. Bob wanted to see the government offering incentives for tax and rate payers who take more responsibility - such as conserving water and reusing grey water. "If someone isn't doing anything, then their rates should be higher. There should be incentives to improve and reduce, and make the region better - rather than a blanket cost that negatively impacts everyone," said Bob. Central Hawke's Bay District Council (CHBDC) said the water rates were derived from modelling completed for business cases for each of the three options. It said costs were determined from what each council indicated it needed to do in their long-term plans. And while there were still a number of details to be worked out, it has been assumed each council would pay its own way for its water infrastructure. Mayor Alex Walker said this was the basis of the numbers presented to the community - so everyone can clearly see what costs and increases are looming over the next 10 years. "We're in a perfect storm in Central Hawke's Bay. We're having to invest in catch-up from past underinvestment, meet growing regulatory expectations and invest for the future all at the same time," said Walker She told RNZ a tripling of water rates by 2035 would be very tough for residents. "This is intimidating for a householder to think about what $7000 of just water would mean for their household," she said. He said it was also intimidating to deal with the huge list of problems that CHBDC had on its plate with its 'three waters' infrastructure, which is the combined services of drinking water, wastewater, and stormwater management. "Twenty-five percent of our drinking water piping network is at high risk of failure, 40 percent of our wastewater pipe network is at high risk of failure. We have two water reservoirs that feed our main towns - both of which are over 100 years old and earthquake prone and need replacement. "We have six wastewater treatment plants - none are compliant and one is under an environment court order and all needed to be upgraded. And all of this is in the context of a growing community," said Walker. Central Hawke's Bay Mayor Alex Walker. Photo: RNZ / Alexa Cook Under the new 'Local Water Done Well' scheme, the Central Hawke's Bay District Council has three options to choose from: A regional controlled organisation, a stand-alone district council controlled organisation, or an in-house delivery unit. The mayor said the council's preferred option was the regional model. "If we are going to make inroads into these huge numbers, then we need to be in a bigger entity, we need a team approach," she said. Walker also acknowledged that cost to councils and ratepayers would have been 'significantly less' under the previous government's Three Waters policy. But she said being part of a much larger water entity with about 22 councils, rather than four, would have been challenging, so this latest scheme was the best way forward. "It's very clear to the councillors and I that the model is not a silver bullet to our affordability issues, but in the current changing legislative and regulatory environment, we are stronger together as Hawke's Bay." Submissions on the new water infrastructure scheme are open until 12 June A spokesperson for the Department of Internal Affairs (DIA) told RNZ that as Mayor Walker has pointed out, Central Hawkes Bay District Council, like many councils around the country, required major investment in water services infrastructure to address underinvestment. "The cost of the required investment will ultimately be met by households and businesses, whether that's directly via council rates or water charges from council owned water organisations," they said. Local Water Done Well is the coalition government's plan to address New Zealand's long-standing water infrastructure challenges, and the DIA said it recognised the importance of local decision making, and flexibility for communities and councils to determine how their water services will be delivered in the future. "It does this while ensuring a strong emphasis on meeting rules for water quality and investment in infrastructure." The DIA said the scheme included key features and significant differences from the previous government's policy, which were more supportive of affordability for households. Waipawa main street Photo: RNZ / Alexa Cook "The previous government's policy imposed mandatory amalgamation of council water services and assets into a handful of large water services entities. It relied on significant efficiency gains and price harmonisation, with some communities within each entity's service delivery area subsidising costs for others to keep household costs low. "This is not a requirement under Local Water Done Well, instead it is up to individual councils and regions to determine what the best arrangements are for their communities." The DIA said an arrangement the coalition government secured last year with Local Government Funding Agency (LGFA) supports affordability for households and other users. "It gives council water organisations under Local Water Done Well better access to financing. This allows them to spread the cost of required investment for long-term capital improvements over future users of the asset, rather than front loading the costs onto the current ratepayer base." Local Government Minister Simon Watts agreed that water rates rises for residents would not have been less under Three Waters, and he said councils are progressing well with their new plans. "They're putting those plans to me in September and when we receive those we will review them and make sure they are fit for purpose. "I don't believe they (residents) will be paying more under our scheme," said Watts. Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
