LIHU‘E — The Kaua‘i Department of Water will conduct four community meetings to discuss the proposed rate increase that was recently recommended by the KDOW board, a county news release states. The meetings are scheduled at the following locations: Nov.
LIHU‘E — The Kaua‘i Department of Water will conduct four community meetings to discuss the proposed rate increase that was recently recommended by the KDOW board, a county news release states.
The meetings are scheduled at the following locations:
Nov. 29 – Lihu‘e Neighborhood Center
Nov. 30 — Kalaheo Neighborhood Center
Dec. 1 – Kapa‘a Neighborhood Center
Dec. 6 – Hale Halawai in Hanalei
All of the meetings will begin at 7 p.m. The public is invited to attend.
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, the release states.
The proposed rate increase under consideration ranges from 7.5 percent 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, 2012, which is halfway through Fiscal Year 2011-2012. An increase in the FRC (facility reserve charge), which pays for additional system expansion required to provide for new customers will be considered at a future time, the release states.
“The increase of 11.2 percent is fiscally conservative to ensure that KDOW has the ability to service KDOW payments on debt it currently holds,” said KDOW Manager and Chief Engineer, David Craddick.
The KDOW board has promised to monitor the department’s performance to ensure it is moving projects forward on schedule to justify the rate increase. If the proposed project schedule is delayed and cash starts to accumulate as a result of the rate increase, the board may cancel the proposed increase.
A complete report on the KDOW’s progress on Water Plan 2020 may be found at www.kauaiwater.org.
