Elkton Town Hall — Jan. 13, 2010 — The Mayor and Commissioners heard preliminary recommendations for utility rate increases in Elkton this afternoon. A draft report presented by the Municipal and Financial Services Group found that Elkton needs a 59% increase for the water fund and the sewer account needs 12% over four-year if the town is to maintain adequate revenue for the system. Rates were based on a range of costs variables such as operating expenses, debt servicing, and major facilities expansion, maintenance and upkeep.
As the town board heard the numbers, they mulled over options. When Commissioner Storke commented that the nearly 60% water rate increase was “a little hard to take,” one of the consultants agreed, saying “It’s not a little hard, it’s very hard.” But he quickly reminded the board “don’t shoot the messenger. As the workshop continued questions moved on to the importance of hook up fees as the way to fund major expansion so the town doesn’t have to shift costs for major projects over to rate-payers.
Since this was a preliminary report, the subject will be something the town board works on at future sessions as it develops the budget.
We’ll file a detailed report in the days ahead.