Portsmouth Water Rates will Go Up 15.4 Percent

Portsmouth Water and Fire District customers will see their bills go up in the next fiscal year.

The Portsmouth Water and Fire District recently approved a $3.84 million operating budget and a total budget of $4.15 million for fiscal 2016, an increase of 2.14 percent.

In the budget, the two-tier water rate schedule is increasing by 15.4 percent and there is a .44 cent increase in all base charges.

The district, in a statement, said the increase was needed because last year’s budget did not include the full 19.4 rate increase for wholesale water purchases from Newport that went into effect for fiscal 2015. The increase is now reflected for the full 12 months in the fiscal 2016 budget.

Additionally, water sales volumes compared to budget were 4 percent higher for sales in the first-tier water rate and 4 percent lower for sales in the second-tier water rate “resulting in a revenue shortfall.”

“This structural deficit has been corrected in the 2016 budget. Also, the District’s total annual water sales have been decreasing at an annual rate of 2% over the last six years,” the statement read. “Projected water sales for the fiscal 2016 budget have been adjusted downward to correct for the decreasing demand trend in order to ensure that actual revenue matches budget revenue.”

The district also needed to increase temporary, part-time staff to meet customer service needs from the fiscal 2015 switch to quarterly billing.

The district is also dealing with more leaks in the aging distribution system.

Board Chairman Phil Driscoll said the increases are needed to keep the budget balance while funding not just ongoing operations, but needed improvements and investments into the system. Finding and fixing leaks also results in less lost water, lowering costs in the end.

The new water rates are $6.63 for the first 5,000 gallons in the quarter and $9.76 for all water use over 5,000 gallons in the quarter. The average residential customer that uses 15,000 gallons of water per quarter would have a quarterly bill of $146.14 for an increase over fiscal 2015 of $17.89. By comparison, the retail customers of the Newport Water system pay residential rates of $10.02 per 1,000 gallons and non-residential rates of $11.22 per 1,000 gallons.

The District’s property tax rate of $0.20 per thousand dollars of assed value will remain unchanged from last year. For a District property assessed at a value of $400,000, the tax would remain to be $80.00. Property tax revenue represents 13.0% of the District’s total revenue.

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. 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.