Interesting interview with Pat Becher from MVWA;
Key points and take away,
1. 2.5% rate increase equals about $1.25 per month per customer.
2. The increase is for Fixed cost (increase in employee Health insurance, PILOT paid by the authority, and debt payment) primarily.
3. The Authority is facing extreme depreciation and need of renewal of fixed assets, this includes mostly the raw water structures of the Hinckley Reservoir themselves, and transmission mains, both for raw and finished water( distribution system), If you review their Capital improvement budgets and plans much is being done, however the necessary 700 miles of water main in the 18 municipalities currently served are in need of replacement, financially the authority states that they can only address 1.5 miles out of the 700 per year, thus taking 350 years to total complete. This is a bit misleading in that not all 700 miles need replacement, if about half was a realistic number 350 miles would need to be replaced typically in a 30 to fifty year life cycle, starting with the most aged and in disrepair, to recycling of new, Basically plans should be in place for maintenance and upgrade at a rate that no assets will exceed its usefulness, in the case of water mains 35 to 30 years can be guaranteed.
4, Cree manufacturing is anticipated to help in stabilizing rates as all necessary water infrastructure is in place (1.5-2 million gallons per day)
5. Bill Keeler recently sold his home in Ilion on top of Grove and N. Third Ave, 2 stated that water was a major issue of lower property values.
6. Pat Becher commented that he was asked in 2002 to give a proposal to join authority, VB declined to take further action then and until this day of crises.
7. Ilion, Schuyler, Frankfort, Herkimer all those seeking current water and service from the MVWA are already approved by enabling Legislation of the creation of the authority. What this does is give privileges and rights to the municipalities and powers of negotiations.
8. This goes along with point #7, The Authority is taken the stand that Ilion make major improvements to its distribution, water infrastructure, before it can be admitted being serviced by MVWA, this is not the wording of the original enabling legislation. MVWA should be doing more financially to assist the Village in this endeavor, they have and are assisting other communities such as Schuyler and The Town of Frankfort, with needed improvements.
The residents and rate payers need to inform themselves of their rights and obligations regarding the potential/ impending move to MVWA product and Service. Elected officials need to be true representatives and advocates and assure that agreements are fair and equitable and in line with Legislation and those currently received by the 18 current MVWA partners. Millions are at stake.
David Murray
Ilion
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