EAST PROVIDENCE — In what has become a quarterly exercise over the last year, the East Providence City Council held an extended conversation about the status of water bills and rates at its Tuesday night, Nov. 17, meeting.
Sparked as in the past by Ward 2 member Helder Cunha in reaction to the largess of bills residents received earlier in the month, the discussion once again touched on percentage and fixed rate charges, the repayment of bonds issued to upgrade the city’s decades-old system, so-called deduct meters and the implementation of a monthly billing cycle among other topics.
Public Works Director Steve Coutu reiterated to the Council the rates over the last year have remained unchanged, however the November bill reflects usage during summer months when residents water their lawns often, fill swimming pools and wash cars more frequently than at other times during the year.
Mr. Cunha, once again, asked Finance Director Malcolm Moore if the administration should seek to procure a new bond to pay off the remaining balance of approximately $52 million of the $60 million in monies currently being used to upgrade numerous infrastructural aspects of the system. Mr. Cunha noted the city’s much-improved bond rating as a reason to seek the new money at a more preferable interest rate.
However, Mr. Moore, as he has during previous discussions on the subject, said as he understands the details of the borrowing, which was done through a state collaborative, the city would not gain any real fiscal relief and that rates paid by residents would basically remain the same.
The most notable point to come from Tuesday’s talk was that by new City Manager Richard Kirby, who seemed reluctant to fully embrace the change from a quarterly to a monthly billing cycle. Though noting some of the inherent benefits, he termed the change a “convenience” rather than a necessity.
Mr. Kirby said the change in cycles will cost $58,000 annually in postage payments alone and that it’s likely an additional clerk will need to be hired to handle the work load possibly bumping the total cost of the switch into six figures each year.
“I have reservations to be honest with you,” Mr. Kirby told the Council in regard to the cycle swap. “I think it would be irresponsible of me not to look into it more closely.”
The manager said he planned to gather Mr. Coutu and Water Superintendent Jim Marvel to vet the matter more thoroughly.
For his part, Mr. Coutu said Public Works will continue to prepare for the change, the implementation of which he added is slated to take place in March of 2016. He said his department would use the first few months of next year to get familiar with and test the new software being purchased. The system is not to be used just for the cycle change but also for more efficient records keeping in general.
It should be noted the city’s water department is run on what is called a revolving fund where all monies derived from charges are used to maintain the system, pay the Narragansett Bay Commission for the water East Providence residents use and repay bonds. In 2014, the previous incarnation of the Council approved two separate bonds worth about $60 million combined to procure the monies necessary to replace or install new pipes throughout the city and rebuild the storage tank in Kent Heights among other improvements.
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