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Town of Wrentham DPW Water Department

Town of Wrentham DPW Water Department. FY 2020-FY2022 Water Rate Study Findings and Recommendations Presented By: Douglas W. Gardner, President Pioneer Consulting Group, Inc. Water Enterprise Analysis Objectives (Completed). Water Division Rate Study Findings. Water Meters.

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Town of Wrentham DPW Water Department

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  1. Town of Wrentham DPW Water Department • FY 2020-FY2022 • Water Rate Study • Findings and Recommendations • Presented By: • Douglas W. Gardner, President • Pioneer Consulting Group, Inc.

  2. Water Enterprise AnalysisObjectives (Completed)

  3. Water DivisionRate Study Findings

  4. Water Meters • Water Meters are your Cash Register! • Most meters are at least 15 years old • Meters slow down as they age • Result: Higher revenue, accurate readings • Quarterly readings

  5. Fire Protection • Public Fire Protection • Hydrants • Cost built into the rates • Private Fire Protection • Dedicated line off main • Unmetered • Readiness to serve charge • Mainly commercial customers (117 connections)

  6. Why Are Water Rates Increasing? • Operating costs continue to rise • Debt Service is increasing in FY 2021 and beyond • Water reserves are being slowly depleted • Must fund capital improvements • Water - FY 2020 $836,000 (funded by reserves) • Rates should have been raised in prior years

  7. Base Charge

  8. Water Consumption Average customer uses 45,000 gallons every 6 months

  9. Metered Consumption Rates • Present: 2 step increasing block rate • Recommend: 3 Step Increasing rate • Lower initial rate • Benefit elderly consumers • Higher 2nd & 3rd Step

  10. Capital Assessment Charge • Present range based charge is inequitable • Recommended: Per 1,000 gallon charge • Based on project cost • Likely decrease each year until maturity • Charge is eliminated when debt is paid off

  11. Average Residential Customer

  12. What does a gallon of Wrentham Water Cost? Less than $0.01 cent

  13. Recommendations • Implement FY 2020 Rates Beginning July 1, 2019 • Continue to build reserves to offset future capital costs

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