Water usage in the Village of Mineola is down so that the revenue generated by residents' and business' use of water is not covering expenses. Therefore, in order to ensure that the water fund remains self-sufficient, the village board agreed to a raise in the water rates.

In the village's budget, the water fund is separate from the general fund. The difference is that the general fund is supported by tax dollars while the water fund is paid for separately with the use of the water the village produces. The water fund is supported through a customers' use of water and is based on the amount consumed.

Costs associated with producing water have increased so that the revenue the village is taking in from water consumption is not meeting the costs to produce it. In order to enable the water fund to continue to operate without help from the general fund, the board considered raising the rates.

In 2002, the village board acting as the board of water commissioners raised the rates for water. However, since then, costs associated with producing water have continued to go up. Costs identified as associated with producing water in Mineola are employee salaries and benefits, fuel, electric, chemicals to sanitize the water, liability insurance, increases in reporting mandates to county and state regulatory agencies and other mandated costs such as those for chemical containment units required at pump stations.

However, factors such as wet summers have led to the village water users not consuming as much as they have in years past. The water fund, over the last few years, has not been able to meet its obligations and expenses. The village board of trustees therefore felt it had to ensure the solvency of the water fund by raising water rates.

The board adopted a three-tier system whereby rates will rise each year for the next three years. The current rates are as follows for one and two-family residences:

$10 minimum charge, which entitles the buyer to 10,000 gallons

$1.50 per 1,000 gallons for 10,000 to 20,000 gallons

$2 per 1,000 gallons for 20,000 to 30,000 gallons

$2.25 per 1,000 gallons for 30,000 to 40,000 gallons

$2.50 per 1,000 gallons for 40,000 to 75,000 gallons

$2.75 per 1,000 gallons for over 75,000 gallons

Therefore, Mineola residents who use 20,000 gallons would pay (with semi-annual billing) $25; those who used 30,000 would pay $25; those who used 40,000 would pay $68; those who used 50,000 would pay $93; those who used 60,000 would pay $118; those who used 70,000 would pay $143 and those who used 80,000 would pay $169.

The new rates in the three-tier system will be as follows for one and two-family residences:

$20 minimum charge for up to 10,000 gallons

$1.65 per 1,000 gallons for 10,000 to 20,000 gallons

$2.15 per 1,000 gallons for 20,000 to 30,000 gallons

$2.40 per 1,000 gallons for 30,000 to 40,000 gallons

$2.65 per 1,000 gallons for 40,000 to 75,000 gallons

$2.90 per 1,000 gallons for over 75,000 gallons

For years two and three, the minimum charge will remain at $20 but each interval will go up $0.05 in year two and then another $0.05 in year three.

According to a study done by the village, the new water rates are still cheaper than some neighboring villages. For the first tier, village residents will pay $36.50 for 20,000 gallons of water; $58 for 30,000; $82 for 40,000; $105.50 for 50,000; $135 for 60,000; $161.50 for 70,000 and $189.25 for 80,000.

Here is a breakdown of what some other villages and water districts charge for water:

20,000 30,000 40,000 50,000 60,000 70,000

Williston Park $40 $68 $96 $124 $162 $180

Garden City $64 $88 $170 $224 $288 $356

In addition to residents seeing an increase in water rates, businesses will also see an increase. Commercial entities will pay additional $25 per meter and an additional $0.15 for every 1,000 gallons used for the first year of the three-year tier. The rate will go up another $0.05 for each of the next two years.

The village board and Mayor Jack M. Martins voted unanimously to increase the rates so that the revenues taken in by consumption of water will pay for expenses incurred by producing water.

Deputy Mayor Larry Werther pointed out that when dealing with the water fund, some costs are unpredictable such as watermain breaks. Also unpredictable, Werther pointed out, is the weather. If the village doesn't get a dry and hot summer, water consumption may be down. He applauded the three year plan to keep the water fund solvent.

Trustees Paul Cusato, John DaVanzo and Linda Fairgrieve also approved the water rate increase. Fairgrieve said the board didn't want to raise the rates, but it was needed.

Water rates will be studied at least every three years. However, the board may also look at water costs before the three years.