Officials will watch sewer expenses

Aug 11, 2020 at 10:20 pm by Observer-Review


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Officials will watch sewer expenses

WATKINS GLEN--After being questioned about potential sewer rate increases during the Tuesday, Aug. 4 board meeting public session, Mayor Luke Leszyk said the village would take a wait and see approach with potential rate increases before making a final decision. The board was informed during the previous meeting by village officials the sewer department was running at a monthly loss totaling thousands of dollars and the loss could be related to decreased usage associated with COVID-19.
"We are going to wait for another billing cycle to see if the monthly deficit continues, and if it does, how much the amount (averages out to be) before we make any decisions about another rate increase," Leszyk said after the meeting.
While it is possible the deficit is COVID-19 related, Leszyk said the monthly cost, which includes debt payments on the new wastewater treatment plant, might actually be part of the actual cost of operating the new plant.
"We don't know how much it will cost to operate the new facility yet," Leszyk said during the meeting. "It's brand new and has never been operated by anyone before. We don't know anything other than we just bought a house and we don't know how much utilities will be."
When questioned during the public session about the possibility of cutting spending in other departments and using those funds to supplement the sewer department so rates wouldn't have to be increased, Leszyk explained that such a move would be illegal as individual departments such as water or sewer must have independent budgets.
"They must stand on their own," Leszyk said.
That being said, Leszyk said he understands the disappointment many residents must be feeling regarding the possibility of a rate increase, especially at a time during the pandemic.
"We are racking our brains here, we're trying to figure this out," Leszyk stated. "We are open to suggestions. Nobody wants to be (the person) to raise rates, but I (will if it is determined that I) don't have a choice,"
During the meeting, the board also decided to push back a vote to seek out a lower interest rate on debt bonds the village is currently paying off. Under current interest rates, Leszyk said the village will save roughly $60,000 over the life of the bonds.
After the meeting, Leszyk said the vote was put off because in order for the vote to be valid it would require a 2/3 majority, unlike regular votes, and board members Laurie DeNardo and Nan Woodworth were not in attendance.

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