Published: August 27, 2008 01:27 am            

NORTH TONAWANDA: Water update offered

Water and Wastewater Superintendent Paul Drof explained the need for his department’s scheduled rate increases Tuesday.

If residents irked over the impending hikes would have attended the North Tonawanda Common Council’s second such budget review session, featuring testimony by Drof, it is likely they would have left the meeting with the glazed-over look of an auto mechanic asked to find ways of saving money on space shuttle maintenance.

“That’s what they rely on us to do, to provide that picture. They have to look at the rate payer vs. what we need at the plant, but we also have to follow federal regulations,” Drof said. “That’s what our job as department heads is, to provide the information they need to make informed decisions.”

The biggest single factor behind the proposed increases might at first seem like a contradiction: Over the years, the loss of heavy industry and efforts on the part of individuals to conserve water has meant the city is selling less of its product, in this case water.

“The bottom line is, despite all of our efforts at keeping things steady, this consumption is killing us,” Drof said. “The only thing that’s changing is consumption. It’s the law of diminishing returns ... we don’t have industry anymore.”

Helping explain the trend, Drof said this year, one of the rainiest summers on record has not only meant customers turn their sprinklers off, reducing usage, but also that irregular spikes in the volume of water that must be treated goes up as does the price tag.

Since 2003, sales have decreased steadily from an average 3.783 million gallons a day, to 3.333 million a day in 2007. In other terms, Drof said users drew about 6 million gallons a day in the mid 1980s, and today usage is about half that.

“Our basic costs have not increased in the past 15 to 18 years, they’re just using less water. When we add all that with industry using high quantities of water having left the area, the only thing we can control is personnel or raise rates.”

Drof said three employees were on extended sick leave this year and that “overtime is no longer enough.”

The department employs 41 people, throughout water, wastewater, distribution and administrative services.

Council member Nancy Donovan stressed the need to save money on employees’ benefits.

“Why are we at this point?” she asked. “What happens if we don’t raise rates?”

“We run in a deficit and we don’t have enough to run the division,” Drof said.

He produced figures he said indicate the department’s overall operating costs have been kept in check, but as population, usage and wet conditions have reduced the draw on water, previous surpluses and fund transfers which have kept rates over the last couple of years “artificially stable,” are no longer enough.

“And now we’re having to pay that piper — we’ve done everything we could.”

Now he’s asking for an additional employee, citing only one individual nearing retirement who’s capable of maintaining technology implemented in the 1990s to reduce the department’s budget from $2,564,407 in 1991 to $2,177,299 in 1992.

“If for some reason that employee leaves us we would be in a world of hurt,” he said.

The plants’ total operational budget for 2008 is $2,582, 082, about double the amount needed to run the plant when it opened in 1982, but not adjusted for inflation. Drof said if it were, the numbers would be decreasing.

The push to consolidate water and wastewater services, including naming Drof head of both operations in 2002, saved the city about $100,000 per year, Drof said.

And then there’s the obvious increases in electricity and natural gas.

“Our costs are going up. Our costs for electricity, for natural gas keeps on escalating just like a homeowners’ costs. We keep on reducing our energy consumption and the cost per kilowatt hour keeps going up; we reduce our consumption of natural gas and then the cost per BTU goes up,” he said.

Proposed increases for water and sewer total about 40 cents for water and 50 cents for sewer, per thousand gallons consumed. Those rates, however, are subject to change based on the council’s review.

A public hearing will be held in council chambers Sept. 9 regarding the proposed budget.

“There’s no longer help from the state to do some of these things, that’s all dried up. These plants are no longer new. It’s over 30 years old, it’s been operating continuously. Were at the point now where we have to protect the public investment in these facilities,” Drof said.

Contact reporter Neale Gulley at 693-1000, ext. 114.

        

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