As you know, there is an election for Water Commissioner coming up on Aug. 30. This year we have a contested election and there have been questions raised in two areas: one, bonding of capital projects and two, water testing for the consumer. Let us take a moment to address each of these questions.
The Hicksville Water District has always maintained its facilities in the excellent condition that its consumers have come to expect. The objective is to maintain the system in prime readiness and deliver excellent water quality. The district has operated in a fiscally prudent manner and has minimized its bonded indebtedness. Actually, the district has not issued debt for over 30 years, preferring to pay-as-you-go. However, it is important to recognize that there are occasions when it is not only necessary, but also appropriate, to finance a major project. The recent bond issue for $4.5 million was necessitated by the need for water quality treatment at the district's most important plant site. The district took this opportunity to completely rebuild and modernize the plant, while it had the facility out of service.
The district has an active program for improving its facilities on a pay-as-you-go basis. For example, next year's budget calls for about $2 million in capital improvements without any increase in debt. The simple fact is that at times the size and scope of a project makes bonding appropriate. Ratepayers should not be saddled with large short-term increases in taxes to finance long-term capital improvements. The district's strong financial position permitted it to take on long-term debt at a highly favorable interest rate of only 4.5 percent. The district acted in a highly prudent manner in providing water treatment at its most important plant site, while minimizing the impact on what you pay. It should be noted that selective use of long-term financing is particularly beneficial to our senior citizen ratepayers.
With respect to the suggestion that the district pay for water quality testing for its consumers, we are pleased to advise you that the district has always provided testing for its consumers. In the event that any resident has a problem or questions with water quality, all they need to do is call the district to discuss their problem and arrange for the appropriate test.
We are truly proud of the work that the board has done in providing residents of Hicksville with excellent water quality and a first-class water system. This has been accomplished by having a dedicated and highly professional staff running the system on a day-to-day basis. We are also proud of our ability to accomplish what we have while holding down the cost to the consumer.
Hicksville Water District
Richard A. Humann, chairman
Gilbert E. Cusick, secretary
Nicholas J. Brigandi, treasurer