Mohawk Valley Water Authority Proposes 2.5 Percent Rate Increase
Mohawk Valley Water Authority customers will be paying more for their water next year if a proposed rate hike is approved.
The MVWA Board of Directors is considering a rate increase of 2.5 percent that would take effect on January 1.
The rate change would mean $9.70 a year in higher water costs for the average household, or about 81 cents a month.
The total proposed budget for the coming fiscal year is approximately $27.1 million.
Some factors considered in the proposed budget include:
- An overall increase in non-personnel operating costs of 5%.
- An increase in PILOT payments to both the City of Utica and Oneida County totaling $107,000.
- Additional debt service payments of $465,000 resulting from the issuance of bonds in 2020 to finance capital construction projects.
- Property and Liability insurance premiums are expected to rise by 7%.
- Overall salaries and wages are expected to increase by 2.3%
The rate increase has been partially offset by a modest decline in the annual payment to the NY State Retirement System of approximately $200,000.
The proposed budget is also supported by $1.3 million in cash carried forward from accumulated surpluses from prior years.
In addition, new revenue expected from the opening of operations at the Marcy Nanocenter site of the micro-chip manufacturer Wolfspeed will also help offset the need for a larger rate increase.
A public hearing on the rate increase will take place on Monday, October 25 at 5:00 in the Utica Common Council Chambers.
The MVWA Board of Directors will vote on the rate hike at its regular meeting at about 5:30, or after the conclusion of the public rate hearing.