Newport slates hearing on water rate hike

NEWPORT – The Newport Water District will ask users this week to accept an 18.6 percent rate hike. Superintendent Thomas Todd explained Monday that this is the first rate hike in five years and is caused solely by rising operations and maintenance costs.

A public hearing on the rate increase is set for 7 p.m. Thursday, July 19, at the Newport Town Office.

Meanwhile, Newport Town Manager James Ricker has appealed to the district’s trustees to ask Palmyra to pay its fair share for water mains that provide fire protection to establishments in that community.

Several years ago, according to Todd, Palmyra refused to pay an $8,000 bill for the annual use of the large mains serving the Triangle business area and Route 2 to Wal-Mart.

This area borders Newport, and even though Wal-Mart paid for the water main expansion, it would have been up to the individual users to pay for the water consumption.

Todd explained this fee was not what many refer to as hydrant rental, but rather a fee for having the increased water for fire protection that the mains provide. He said the fee is similar to insurance and that towns pay for it so the water is there when they need it.

“Instead of going to court and spending even more money on lawyers’ fees, we opted to remove the hydrants,” Todd said. Palmyra does not pay the Public Fire Service Rental, despite having the mains in place.

The Catch-22, however, is that if any of the businesses on the Palmyra side of the town line need fire services, it will be the Newport Fire Department that responds, and they will hook onto a Newport Water District hydrant.

“That water is paid for by the Newport Water District users, not Palmyra,” Ricker said.

Todd agreed. “If a house catches fire, it’s our hydrants and our water they are using. Come on. Fair is fair.”

Todd said he will attempt to convince Palmyra officials to go with public fire protection in that area, which includes several restaurants, a gas station, a motel, Wal-Mart, a recreational vehicle dealership and the local Chamber of Commerce. All of the establishments are over the town line in Palmyra.

“As that area grows,” Todd said, “pressure on the town will likely come from developers. Say something like a Lowe’s wants to go in there. They are going to want hydrants.”

The bottom line, therefore, is whether the residents of Palmyra want to pay for development that provides a larger tax base.

Dan Sprague, chairman of Palmyra’s Board of Selectmen, said that once Todd approaches him about the hydrants, he would want a joint meeting among the planning board, selectmen and the Newport Water District to discuss options.

As for the proposed rate increase, Todd said the hike would be offset for some users because of an accompanying change in the district’s rate structure. As proposed, a lower rate will apply for those using 900 cubic feet of water or less, rather than the 1,200 cubic feet or less currently used.

“This will allow those who conserve water, such as the elderly and others on a fixed income, to save on their rates,” Todd said.

Todd said the district is also saving $4,000 a year by changing its billing system to postcards rather than letters.