By Kirk Ross
Staff Writer
The good news coming from the Orange Water and Sewer Authority is not only that the reservoirs are nearing capacity but that conservation practices among the utility’s customers continue even though the more stringent rules have been lifted.
The bad news, though, is that less water use has opened up a hole in the OWASA budget that likely will require a hefty rate increase.
OWASA’s board of directors is scheduled to review a plan tonight (Thursday) that would raise rates by an average of 24 percent. A typical residential bill for a customer using 5,000 gallons would rise from $58.18 to $72.69, a jump of almost 25 percent.
OWASA executive director Ed Kerwin told the Carrboro Board of Aldermen Tuesday night that he is expecting a deficit of close to $1.5 million for next year.
All things considered, Kerwin said, “I’d rather run out of money than run out of water.â€
Because of the shortfall, Kerwin said the utility has enacted a series of budget cuts that include a hiring freeze on open positions.
While an estimated drop in water use of around 13 percent is a major factor in the revenue drop, a 60 percent reduction in hookup fees due to a slowdown in new-home construction is also contributing to a reduction in revenue.
To cut costs, the utility has delayed some of its plans for meter and infrastructure upgrades. OWASA will, however, move forward with a project delayed last year to reduce odors from its Mason Farm treatment plant.
OWASA plans to hold a public hearing on the budget and the proposed rate increase on June 12.
Also on Thursday night, with reservoirs officially at 85 percent of capacity and May rainfall expected to be higher than average, the OWASA board is scheduled to consider lifting its Stage One Water restrictions.