City water rate increase to help fund improvements

Posted 9/1/15

The Warwick Water Division will raise rates for the first time in four years beginning with the September quarterly utility bill. The added revenues will support future infrastructure and service …

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City water rate increase to help fund improvements

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The Warwick Water Division will raise rates for the first time in four years beginning with the September quarterly utility bill. The added revenues will support future infrastructure and service improvements for its nearly 27,000 customers, according to a release. 

The 8.45 percent increase, which for a typical user will amount to $24.16 per year, was based on the results of a recent cost of service (water rate) study, which included a review and evaluation of current rates, current and projected revenue and expenditures and a complete cost of service to support these projections. 

According to the most recent data available from the Water Resources Board, in 2013 Warwick rates ranked 25th among the 29 public water systems in the state in terms of water rates. Nearly 50 percent of the entire Water Division expenses are for the purchase of water from the Providence Water Supply Board. Water rates are set at the beginning of the fiscal year and are dependent on property water usage and unaccounted for water.

The Water Division is a stand-alone fund, which depends solely on its customer revenues to support expenses and reinvestment in its infrastructure and services. Over the past six years, the combination of increased cost of wholesale water purchased from the Providence Water Supply Board and unaccounted for water has resulted in a shortfall of $1.5 million, which has delayed necessary infrastructure projects. Unaccounted for water is a normal occurrence for public water systems and encompasses hydrant flushing, purging of water lines on a scheduled basis, street sweeping, permanent bleeders on dead-ended lines, and unforeseen water leaks in the system. The Water Division has an ongoing program of leak detection, however, which is gradually reducing the amount of unaccounted for water.

The increase, which is expected to generate an additional $675,000 for the year, will help to replenish the infrastructure replacement fund.

Water rates were last adjusted in September 2011 and amounted to less than $10 annually for the average user, according to the Water Division.

The Water Division’s customers encompass the whole city, with the exception of the Apponaug, Cowesett, and Toll Gate areas, which are served by the Kent County Water Authority.

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  • wwkvoter

    For those with sewers, does that 8.45% increase the total water/sewer bill, or just the water portion?

    Wednesday, September 2, 2015 Report this

  • patientman

    TaxPayer, my question exactly. I'm sure the answer is no. Expect a 14% increase. The people that played by the rules have gotten screwed. Remember the connect capable fee that was supposed to be charged for people that choose not to hook into the sewer? Had the sewer board and city council been honest a lot of people would have made very different decisions.

    Wednesday, September 2, 2015 Report this