The East Greenbush Town Board is holding a Public Hearing concerning proposed Sewer Rate Increases at 7:00 PM on April 13, 2016. The increases are deemed necessary to pay the annual debt service for the Waste Water Treatment Plant.
Supervisor Conway and Councilperson Tierney analyzed the current usage and fee structure and developed a proposal that would increase fees (the long-dormant Citizens Fiscal Advisory Committee has not reviewed the proposal). The new fees for residential minimum users:
Couse and Third Avenue: $121.50 (+$31.50 or 35%);
General: $84.50 (+$34.50 or 69%);
Hampton Manor: $156.00 (+$52.00 or 50.0%)
Hampton Manor: $156.00 (+$52.00 or 50.0%)
One stated goal was to develop equitable billing; however, the historic bias favoring General is continued (General accounts for 52% of the 2013–15 Average Usage but only 40% of 2013–15 Average Revenue). Absent a cost accountant's analysis, there is no defensible reason for this bias.
Facing an unavoidable tax increase or fee increase, I‘ve long expressed my preference for a tax increase. The rationale is straightforward. Taxes:
(1) Should support debt and capital improvements with fees supporting operations and maintenance.
(2) Are guaranteed – the Town is 'held harmless' by the County if one’s taxes aren’t paid. Unpaid fees are added to the next year's taxes and not available when needed. Fee increases also yield lower usage, requiring further increases.
(3) Are paid in January, while fees are billed quarterly or semi-annually and may not be available when the debt service is due.
(4) Are deductible by homeowners itemizing deductions on their Federal and State tax returns and thus subsidized, while user fees are not.
I respectfully suggest that the Town Board defer action, have CFAC study the Sewer and Water tax and rate structures and make all truly equitable.
Pete Stenson
East Greenbush
I couldn't make tonight but will be there next week, so this probably has already been said but CFAC did attempt this last spring when asked to do the study and they said they didn't have the expertise nor resources to do so. They recommended seeking a professional to do so.
ReplyDeleteAfter sending two letters to the Advertiser, Rick Matters declined to make a statement at the hearing, but spent the evening texting MAM. Perhaps it was because the Gadfly pointed out that the "authority" he cited in his letters didn't support his (or MAM's) argument. Maybe he thought nobody would check, and he'd get away with his name dropping.
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