UPPER MOHAWK VALLEY REGIONAL WATER BOARD PUBLIC RATE HEARING MINUTES March 19, 2007 – 5:30 P.M.

 The public rate hearing was held at the Utica City Hall, Common Council Chambers, on Monday, March 19, 2007.  Chairman Gaston opened the hearing at 5:37 P.M. and stated that the purpose for tonight’s meeting is to have a public hearing on the new rate schedule for the Upper Mohawk Valley Regional Water Board, which would go into effect on April 1, 2007. 

The following Board Members were present: Bruce Brodsky, Rolf Buchner, George Gaston, Millicent Rader-Harris, Nate Price, A. Eugene Snyder, Bette Szesny and Frank Trevisani.  Also present: Executive Director Patrick Becher, Board Attorney Edward Earl and Comptroller James Korfonta.  There will be a brief presentation by the Executive Director and Comptroller on the rate structure and pertinent information that drives the rates.  Following the presentations the Board will receive public comment.

Mr. Becher explained that the MVWA is required to have a rate hearing each year prior to the Board setting rates for the fiscal year.  Our fiscal year starts on April 1, 2007 and runs through March 31, 2008.  For the coming fiscal year the Board has proposed a rate increase of 10%.  For the average residential customer based on approximately 88,000 gallons of water a year, the increase amounts to about a $2.30 per month or $28.00 for the year.  That 10% will produce about $1 Million of new funding for the Water Authority needed for unfunded federal mandates, which will be $25 million in new spending over the next three years and $400,000 for cash capital expenses.  The MVWA is forfeiting more than $1,100 per day in water sales due to the inability to expand and $225,000 to continue the lawsuit against the Canal Corporation.

Mr. Korfonta explained the MVWA’s Summary Budget and proposed 10% rate increase.  The components of the proposed increase include: 1.2% for $9.4 million dollar operation expenses, .2% for $225,000 in legal costs, 2.8% for $14 million to comply with EPA regulations, 2.8% for $400,000 in cash paid capital construction, .7% for a $100,000 pilot payment to the City of Utica and 2.3% for reduction in water consumption.  Revenue from water sales comprises $15 million or 86% of the overall budget.  Other revenue resources of approximately $2.5 million include: laboratory services, late fees, billing services, sale of hydroelectric power and interest earned on investments.  Significant increases in costs of operations are contractual payroll increases, employee benefits, chemical costs, equipment and repairs and fuel for vehicles.  The proposed service rates and fees are expected to meet the increased operational and capital improvement costs contained in the proposed 2007-08 budget. 

Chairman Gaston asked if anyone wished to comment or had any questions.  One person came forward, Mike Giancotti a Utica resident who owns property in the area and said he was against the proposed hike.  Mr. Giancotti would end up paying $2,200 more per year.  Most of his tenants were low-income and could not absorb the increase.  

Chairman Gaston thanked Mr. Becher, Mr. Korfonta, Board Members and the public for their participation.  The Public Rate Hearing ended at 6:20 P.M.

Respectfully submitted,

 ____________________________          

Suzanne M. Harmon, Secretary

Upper Mohawk Valley Regional Water Board