City of Montpelier, Vermont

Montpelier 2011 / Annual Report / 31Water FundIt is the responsibility of the Department of Public Works –Water Division to maintain a consistent and adequate flow ofwater to the City from the City’s water source at Berlin Pond.A new state of the art Water Treatment Plant was completed infiscal year 2001.User fees fund the Water Division. Water staff maintain hydrantsfor fire protection, construct water lines, maintain control valvesand gates, flush hydrants annually, keep daily records on waterquality and consumption, repair leaks and mains, operate thewater treatment facility, oversee land management of the City’sproperty in Berlin and support all systems associated withproviding potable water to our customers. There are more than3,000 water meters in the City of Montpelier and each meter isread quarterly.The Montpelier City Council, sitting as the Water & SewerCommissioners, determines water rates. Water rates arereviewed annually in the spring. We welcome your input inestablishing these rates. Water rates increased substantially inthe fiscal year 2006. Rates have increased 5% each year on July1, 2007, July 1, 2008 and on July 1, 2009 (no increase in 2010).Despite these increases the Water Fund is accumulating deficitsdue to high fixed costs (debt) and a reduction in billable usagedue to conservation. The current quarterly rates are asfollows: $7.51 per 1,000 for the first 50,000 gallons, $7.97per 1,000 for the next 200,000 gallons, $12.93 per 1,000for over 250,000 gallons and a fixed charge for all accountsfor meter reading, billing and other administrative servicecosts of $25.00.Annual water usage decreased more than 7 percent over the lastfive years. This conservation of water use by the city residentsand businesses is producing shortfalls in revenue for the WaterFund. The City Council’s Water and Sewer Rate Committeeis in the process of studying the structure of the water to assurethat annual revenues will cover annual costs. The Committeeis expected to recommend a new rate structure to the CityCouncil on or before July 1, 2011.The Fiscal Year 2012 Budget Information about the proposedWater Department Budget can be found online at: http://www.montpelier-vt.org/group/357.html. For Budget questions,please contact the Finance Department at 223-9514. If youhave a concern or question about your quarterly water bill,please contact the City Clerk’s Office at 223-9500.SANDRA J. GALLUP, Finance DirectorSewer FundThe primary responsibility of the Department of Public Works– Sewer Division is to collect and treat sanitary sewage fromthe City of Montpelier and part of the Town of Berlin. Userfees fund the Sewer Division.The Sewer Division maintains sanitary sewer collection mainsand pumping stations, installs new service connections andrepairs clogged or broken sewer lines in Montpelier. Thisdivision is also responsible for the maintenance and operationof the Waste Water Treatment Plant, which has undergonemajor upgrades to become a regional treatment facility forseptage and leachate treatment. The upgrades are in responseto the required state and federal environmental standardswhich improve the quality of life in Montpelier and the Stateof Vermont.The Montpelier City Council, sitting as the Water & SewerCommissioners, determines sewer rates. Sewer rates arereviewed annually in the spring. We welcome citizen commentsin the rate review process. Sewer rates increased substantiallyin the fiscal year 2006. Rates increased 5% on July 1, 2007,5% on July 1, 2008 and 5% on July 1, 2009. There was noincrease in the rates on July 1, 2010. It is expected that utilityrates will be adjusted annually due to increases in maintenance,chemical, fuel, electricity costs and debt payment. New stormwater management requirements also will add operating costsin the Sewer Fund. Quarterly sewer rates are as follows:$8.47 per 1,000 gallons of water used and a fixed chargefor all accounts for meter reading, billing and otheradministrative service costs of $30.00. The City Council’sWater and Sewer Rate Committee will be meeting in 2011 toconsider future rate increases that may be necessary to coveroperating and debt service costs.At the March 3, 2009 meeting, the voters approved to borrow$585,000 for CSO Elimination Projects (Arsenal, McKinley,Hinkley, Richardson, School, Lower State and GrahamTerrace and Solar Panels for Wastewater Treatment Facilityimprovements). Later in the spring, the City applied for andreceived approval for 50% funding from the American Recoveryand Reinvestment Act (ARRA stimulus money). To meet theARRA grant requirements, the City held a Special Meeting(Australian Vote) on July 14, 2009 where voters authorized thetotal cost of these improvements and the equipment purchaseof a Sewer Rodder/Vacuum Truck. By taking advantage ofstimulus monies available for “shovel-ready” projects,the Sewer Fund is expected to receive $645,500 in federaldollars for capital improvements and equipment purchasesthat were included in the FY10 Sewer Fund budget. Theseprojects were completed in December 2010 and the financialbenefit from these grants will be recorded in fiscal year 2011.