Water costs to jump as treatment plant bids exceed estimate
City customers will pay $50-$55 per month; county rates to be about $100
By Lee Raynor
Editor
Posted: 11:59 PM EST Tuesday January 03, 2006
Escalating construction costs are blamed for the rising price of the Neuse River Water and Sewer Authority’s plan to provide water to seven communities, including Kinston.
The original estimate of $109 million dollars to treat and distribute drinking water from the Neuse River has skyrocketed to $142.7 million and one city councilman doesn’t believe the price will get any cheaper if construction is delayed.
Councilman Jimmy Cousins, one of Kinston’s representatives to the WASA board, said development in countries such as India and China will keep the demand for construction materials high.
“We just need to bite the bullet and do it now,” Cousins said.
“When you don’t have a bullet to bite, then what do you do?” Councilman Joe Tyson asked. “People can’t afford to live here.”
The council heard the bad news Tuesday from Public Works Director Scott Stevens. The price of concrete and PVC pipe has gone up dramatically, Stevens said.
Councilman Van Braxton suggested delaying the project for a couple of years until the effects of hurricanes Floyd and Rita wear off. Braxton said massive rebuilding in hurricane-stricken states is mostly responsible for the increased cost.
The state is requiring 15 counties to reduce by 75 percent their drain on water from deep aquifers. The deadline is 2018. Kinston, Pink Hill, La Grange, North Lenoir, Deep Run, Grifton, Ayden, Bell Arthur and the Eastern Pines Water Corporation joined to form the Neuse River Water and Sewer Authority in order to meet the requirement. WASA will supply these communities with water from the Neuse River.
Stevens warned city officials that delaying construction on the water treatment plant could endanger grants and loans that are helping pay for the work. Most of the project money will come from a $35 million grant, $70 million from the United States Department of Agriculture, $30 million from a state loan and $7 million from the Eastern Pines Water Corporation.
Costs could be reduced 9 percent by using smaller water pipes but the scale-back would reduce water capacity by 40 percent. Stevens said WASA eventually would have to replace the smaller pipes and that could cost more than by following the original plan now.
Water will become an expensive commodity, council members agreed, and people will learn to conserve by not washing their cars, taking quicker showers and not watering their lawns.
Kinston water customers have seen two 14 percent rate increases already: one in July 2004 and another in July 2005. Unless the plan now in place is revised, two more 14 percent increases are scheduled: one in July 2006 and the fourth in 2007. City customers can expect to pay about $50 to $55 monthly for sewer and water when all increases are figured in. Customers in the county can expect double that amount.
If the project had come in at the original $109 million estimate, water would have cost city residents $2.61 per thousand gallons. Under the higher $142 million estimate, water will cost $3.34 per thousand gallons.
“This will have a significant impact on use,” Stevens said.
The additional costs residents are paying now are going into a water fund that is protected from any other use. Stevens said the fund might be able to be used later to help reduce customer bills.
Kinston’s water use has fallen from 5.38 million gallons daily by 11,556 customers in 1997 to 3.71 million gallons daily by 11,003 customers in 2004. Stevens said use in 2005 rose to more than 4 million gallons daily but final figures are not in. He is projecting even greater use this year because of an increase in housing and businesses. This year could see water consumption up to 4.5 to 5 million gallons daily, he said.
The city will be asked to approve the construction bid during the Jan. 17 council meeting. |
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