To the Editor:
In response to story published Nov. 6, “Oak Bluffs business owners question sewering policies,” it’s a little more complicated than should the larger users have their rates reduced. The question that needs to be asked is, are all users paying equally for the benefit they receive by being connected to the sewer system? You need to ask yourself what is it worth yourself to be able to do your laundry, flush your toilets, take a shower, and prepare meals and not have to worry about when the septic system in your backyard is going to fail, costing you around $10,000 to replace.
Wastewater disposal is a utility, much like electricity, cable TV, telephones, cell phones, water, Internet, heat etc. In my opinion, the order of importance would be water, wastewater, electricity, heat, telephone, Internet, cell phone and finally cable for a good quality of life.
The base/minimum rate charged to all users regardless of how much water they use is $400/year and has not changed since the plant went online in 2002. The article cites a Tighe & Bond rate study which said the average user pays $1,020, but that’s total revenue divided by total customers and really means nothing.
The vast majority of customers pay $400. As of the last billing the town had 698 customers, so charging them $400. generates $279,200. The annual operating budget is $708,926.40 meaning that those customers who generate more than 40,000 gallons have to make up the difference of $429,726.40. But remember, the vast majority of customers only pay the minimum, so a very small minority needs to make up this difference. About 70 percent of the total expense budget is a fixed cost (salaries, electricity, heat, AC, phones, alarm monitoring, etc.). This means that at least $496,248.48 is the minimum amount that should be collected by the base/minimum charge. Fixed costs are not related to flow coming in.
Looking back at my order of importance, you could almost list them backwards in terms of costs. Those with cell phones all pay well over $400/year, even the lowest priced cable/home phone/Internet package is well over $400. Heat and electricity are well over $400, and water is roughly the same as wastewater and that’s the problem. Why are we willing to pay so much more for non-essential utilities and get so worked up over the basic needs of life: water and wastewater disposal.
The base/minimum rate needs to be seriously adjusted to achieve all users paying equally for the benefit they receive. By doing this you lower the burden on the minority and bring your utility in line with what the service means to your quality of life.
Each of the non-essential utilities I listed costs close to, or in excess of $1,000/year. If the Town of Oak Bluffs made the logical move of increasing the minimum annually, so it would be more in line with other utilities, then all users would be paying equally for the benefit they receive.
Is it worth $1,015.65/year to be able to do your laundry, flush your toilets, take your showers, prepare meals and do other water-related activities? This would be the amount charged to each of the 698 customers to cover the budget. I think it’s worth it, do you?
The question isn’t should the Town of Oak Bluffs lower the rates of large user but is, should they adjust the rates to better reflect the service they provide.
Joseph Alosso
Oak Bluffs
Mr. Alosso was facilities manager of the Edgartown wastewater plant from 1995 until his resignation in 2012, and facilities manager of the Oak Bluffs plant from 2000 until his retirement in 2012. He is currently superintendent of Plainville Water Pollution Control in Plainville, CT.