LIHU‘E — The Kaua‘i Department of Water Board of Directors will meet at 9 a.m. on Friday to consider a rate increase for residential and agricultural customers. The rate increase will be the only item on the agenda for this
LIHU‘E — The Kaua‘i Department of Water Board of Directors will meet at 9 a.m. on Friday to consider a rate increase for residential and agricultural customers.
The rate increase will be the only item on the agenda for this special meeting. The public meeting will be held at the KDOW conference room at 4398 Pua Loke St.
The KDOW board has been studying the need for a rate increase for over a year, having conducted in-depth rate studies and assessed the current and future needs of the water system, a county news release states.
The proposed rate increase under consideration ranges from 7.5 percent per year for four years to 11.2 percent per year for four years. The rate for agricultural customers would be held at half the general use rate. The rate increase would be implemented Jan. 1, which is half way through Fiscal Year 2010–2011.
An increase in the facility reserve charge, which pays for additional system expansion to allow for new customers, will be considered at a future time.
The increase of as much as 11.2 percent may be necessary as a fiscally conservative number to ensure that KDOW has the ability to service its payments on debt it currently holds. This would be particularly true if future increases in the FRC for new development don’t bring in as much revenue as anticipated.
As a promise to the public and to fulfill its fiduciary responsibility, the KDOW board has committed to aggressively monitor the productivity of the KDOW staff engineers to ensure they are moving improvement projects forward on schedule to justify the rate increases, the release states. If, at any time, a surplus is determined to be building due to a lag in project activity, the rates may be reduced.
“Nearly a quarter of our water lines were installed more than half a century ago; and some pipes date back as early as the 1920s. It is imperative that we fulfill our mission of providing safe and sufficient drinking water by maintaining and in some cases replacing this aging system. In order to do that we must increase rates,” said David Craddick, manager and chief engineer of KDOW, in the release.
“The alternative is that our system will deteriorate beyond our ability to maintain it properly; and we will have to borrow additional money to repair it — paying interest to lenders,” he said. “The better strategy is to put the money into our system directly and take care of it properly.”
In 2001, KDOW developed a comprehensive, long-range plan, called Water Plan 2020. To date, over $100 million has been spent on improvement projects throughout the island, the release states. Last fiscal year alone, more than $43 million was spent on improving water systems. Detailed reports have been posted on a new website linked to the KDOW website. See www.kauaiwater.org “Progress Report on Water Plan 2020.”
Information about the possible rate increase was presented during a series of speaking engagements at Rotary and Lions Clubs’ meetings, other key business groups, and at the mayor’s recent community meetings, the release states.
A brochure discussing the proposed rate increase was produced by KDOW and is available by calling 245-5455.
The KDOW manages nine separate water systems on Kaua‘i under the comprehensive guidance of the Water Plan 2020.
The long-range planning document developed with extensive community input provides a road map for upgrading aging infrastructure and meeting the needs of growth.
For more information about Water Plan 2020, visit www.kauaiwater.org.
The department monitors, operates and maintains 51 wells, 60 tanks, two tunnels, 19 booster pump stations and 75 control valve stations as well as over 400 miles of pipeline to approximately 20,000 customers, the release states.
The department’s staff of 75 performs all functions necessary to collect, treat, and distribute potable water from the source to the tap as well as most support functions, including accounting, customer service, engineering, planning and procurement.
To request materials in an alternate format or an auxiliary aid to participate in the KDOW meeting, call 245-5455 prior to the meeting.
