News

Cairo sewer rate increase blasted

By David Gordon

CAIRO — The sewers in Cairo were poorly designed, badly maintained and are excessively costly, residents say. The system consists of linked septic tanks with central treatment only for “grey” water, several residents pointed out.

They turned out in force on Monday to protest a proposed 50 percent increase in usage fees. By the time the meeting was over, many of the 75 to 80 residents accepted that the problems are the result of a long history of neglect, and some offered to help find solutions to the sewage problems.

The increases shown in the budget for the water, sewer and EDU (Equivalent Dwelling Unit) budgets are the first in several years, Town Supervisor John Coyne said. Water rates were last raised in 2005; sewer rates in 2002, and EDU in 1998. The EDU pays principal and interest on the loans that paid for the construction of the sewer system.

Coyne emphasized that the rates are related to the current use of the water and sewer systems. “These proposed increases are for the existing district only,” he said. “This has nothing to do with development that is proposed in the district or in the town.”

While water and sewer districts are generally paid for out of usage fees or taxes on residents of those districts, “for many years the general fund, which is the fund that all taxpayers pay their taxes into, has been helping the water and sewer district,” Coyne said. “The water and sewer district should be able to be self sufficient, and ultimately that’s what we’re trying to make happen here today.”

The town had no preventive maintenance programs for equipment, such as generators and pumps, for many years, Coyne said, and playing catch-up will be expensive. The town is seeking contracts for routine maintenance, he said.

In 2008, the water district budgeted $202,340 for administration, source of supply (equipment, maintenance, general operations), social security and debt service. Revenues were budgeted for the same amount. However, actual expenses up to October 31 came to $163,358, while revenues so far have come in at $171,067. The budget called for paying back $35,000 the system owes the general fund from before 2004, which has not yet been paid. The current debt to the general fund is $82,000, bringing the total to more than $100,000.

Estimated expenses for 2009 are $190,965. Coyne recommends increasing rates to provide some cushion against unexpected expenses and to begin putting money away to pay off the system’s debts. If rates are increased by 12.2 percent, the estimated income would be $194,875. If they are increased by 15 percent, income would be $198,819. Coyne said he would recommend to the board that the rate be increased 15 percent.

The proposed increase would bring the price for 9,000 gallons, the minimum, to $61.81, up from $53.75.

In the sewer district, expenses and revenue were budgeted for $168,260. To date, the system has cost $105,718, while actual billing has only taken in $85,949. Accounts receivable is listed as $20,596. The major expense here is sanitary sewers - that is, the removal of sludge from the plant and pump-outs from all the septic systems, Coyne said. This is budgeted in 2009 at $54,699, up from $36,000 in the 2008 budget and $36,954 spent so far this year.

The increase is the result of years of not adequately maintaining the system, Coyne said. Catching up will be expensive.

The sewer district owes the general fund $200,000.

The budget for 2009 is $112,309. An increase in rates of 40 percent would bring in $117,522, while an increase of 50 percent would bring in $125,916.The extra money would provide a reserve against large expenses or an opportunity to begin paying the general fund back.

At 40 percent, the $32 basic charge increases to $44.80, with a $5.60 per thousand gallons for usage above the 9,000 gallon minimum. At 50 percent, the basic charge would be $48, with $6 per thousand gallons above the minimum.

The EDU, which is solely to pay off outstanding loans, was increased in 1998 from $25 to $80 per quarter. It has not been increased since. Coyne said he is proposing to increase the EDU quarterly payment to $88, or 10 percent. For comparison, a 5 percent increase would result in an $84 per quarter payment.

Principal and interest in 2008 was budgeted at $203,000. Actual payments in 2008 have been $188,560 versus accrued payments of $191,451. If there’s a shortfall, the general fund, paid by all town taxpayers, will have to make up the difference.

Erica Gravina noted the town is seeking a $2.5 million loan to upgrade the sewer system. This loan would be paid back by sewer district residents only, unless the district could not meet the payments, in which case all the town’s residents would have to pay for it through the general fund, Coyne said.

Anthony Patasso asked why people keep referring to a sewer system. “We have no sewers in Cairo. It’s only a gray water discharge. People think we have a sewer system. People turn on a faucet and they don’t know where the water is going.”

Gravina suggested that the town hire a consultant to handle the design and construction of any upgrades to the system. “I don’t think anyone in the town, or in the county, has the expertise to handle this.”

Rita Young wanted to know if the reservoir could be used to offset the cost of supplying the water district. Coyne said the current user fee of $15 per year just covers the park maintenance and nature trails. So far, just $450 has been collected. As the number of users increases, some income could go toward water district expenses or to pay back the general fund, he said.

Scott McCloud said he doesn’t mind paying for services, but not for the kind of substandard service provided by the Cairo Sewer District.

“It was a boondoggle, and it never should have been put in,” he said. “If we were going to put in a sewer system, we should have put a real sewer system in.”

Ellsworth “Unk” Slater said that when the residents were asked to vote on the sewer system, they were quoted one price, then they found the actual price was much higher. The town must now be sure the estimate for any upgrade is accurate, and the contractors meet the estimates. He also accused the engineer working on the sewer system upgrades of having a conflict of interest involving Alden Terrace.

Several residents were critical of the Town Board for letting the town’s grant writer go. Coyne said he has had an offer from an individual to write grants for the sewer and water districts. Gravina said she has some experience writing grants and would be willing to help.

Rita Young noted that a committee of Cairo residents, with help from the county, were able to secure a grant. Coyne agreed that it would pay to see what expertise the county can provide.

Coyne said he intends to go over all the comments and suggestions and discuss the final budget, which must be passed, along with the overall town budget. on November 19.

Reader Comments

Submit a Comment