Boring water bills may rise
A charge on each meter could raise $21,000 for loan interest and new pumps
Boring Water District board members are talking about raising local water bills by charging $3 more each month for each water meter.
In this proposal, under board consideration as part of the next annual budget, the cost of water would remain the same as it is now. The increase would only be a higher meter charge, said Board Chairman Bob Boring.
The purpose of asking ratepayers for more money is to establish an equipment replacement fund and set aside some funds to pay off long-term debt earlier than expected.
Boring said the water district has never had a fund to pay for equipment replacement, and several pumps are nearing the end of their expected life.
By paying the loans off more quickly, Boring said, the district would save lots of money in loan interest.
The district has two outstanding loans: one that would take four years to be paid off and another that would take 10 years before achieving a zero balance.
Boring says the district would pay nearly $500,000 in interest if both loans were allowed to mature over the full length of the loans.
The sooner we pay them off, Boring said, the less interest we pay and it gets the district closer to a cash basis.
It would be so nice to be on a cash basis if we needed a pump or a well. It would be nice to have cash instead of a loan.
The decision is still to be made, and the board has a meeting scheduled at 7 p.m. Tuesday, May 14, at the district office, 28577 Wally Road. Comments from ratepayers are welcome at board meetings.
The final budget hearing, where the vote would be taken, is likely to be the following months meeting, at 7 p.m. Tuesday, June 11.
For more information on the Boring Water Districts budget, call the district office at 503-663-4594 or Bob Boring at 503-663-3078.Add a comment