MADISON - Residential water rates in the village of Browntown will soon climb by 128 percent, the first substantial increase in 20 years, according to an order issued Tuesday by the Public Service Commission.
The new rates could go into effect this week, said Village Clerk Donna Wyss, as implementation steps are being finalized. The rates would be reflected in quarterly water bills mailed in early April.
Average residential customers currently paying $47.48 quarterly for 9,000 gallons of water will pay $108.60 for the same volume of water, according to the PSC order.
Despite public notices and even going door to door to inform residents of the upcoming increase, Wyss expects customers to be shocked by their April water bills.
"It will come as a shock to customers, but (the village) board, and the public works director, explained that there has been no substantial increase in many, many years and we have to have enough money to repay the loan," Wyss said Tuesday.
The Department of Natural Resources last year ordered the village to replace its crumbling 70-year-old well house, and contracting for that and to replace some water resulted in a $501,000 construction project. The village received a Community Development Block Grant for some of the cost but financed the rest through cash reserves and a local bank loan, Wyss said.
The well house was built and went into service last fall.
Rates for the water utility's other commercial, industrial and public authority customers also will increase between 130 and 137 percent depending on customer class and usage.
The new rates are projected to boost annual revenue by $51,625, eliminate the projected $30,482 income deficit and produce a $21,142 net income after total expenses of $78,242 and total revenue of $99,385, according to the PSC order.
The PSC asked the village to take steps to reduce water loss due to leaks in the system, which it said have been excessive since 2011. Water that is pumped and distributed but not billed puts stress on the water system without the utility recovering revenue to maintain the infrastructure, the PSC noted.
Public Works Director Robert Radzwilowicz has been searching for the location of the leak or leaks, but "he's the only man" the village can assign to the job, Wyss said.
Last year was an unprecedented busy year for the utility, which had a well house and water mains replaced and new man holes installed, Wyss said.
Like the crumbling well house, the water leak issue is another problem that was neglected by the village, said Wyss. However, new board members want to address problems and utility rates in a timelier manner, she added.
"This won't happen again; we'll stay current with rate cases. I'm hoping we don't have to do this for quite a while, but the new board knows we need to stay current and can't just do a few 3 percent increases and let bigger rate increases go for 20 years," she said.
Although the PSC last approved a full rate case for the village in 1998, it authorized simplified 3 percent increases in 2006, 2007, 2008, 2015 and 2017.
The new rates could go into effect this week, said Village Clerk Donna Wyss, as implementation steps are being finalized. The rates would be reflected in quarterly water bills mailed in early April.
Average residential customers currently paying $47.48 quarterly for 9,000 gallons of water will pay $108.60 for the same volume of water, according to the PSC order.
Despite public notices and even going door to door to inform residents of the upcoming increase, Wyss expects customers to be shocked by their April water bills.
"It will come as a shock to customers, but (the village) board, and the public works director, explained that there has been no substantial increase in many, many years and we have to have enough money to repay the loan," Wyss said Tuesday.
The Department of Natural Resources last year ordered the village to replace its crumbling 70-year-old well house, and contracting for that and to replace some water resulted in a $501,000 construction project. The village received a Community Development Block Grant for some of the cost but financed the rest through cash reserves and a local bank loan, Wyss said.
The well house was built and went into service last fall.
Rates for the water utility's other commercial, industrial and public authority customers also will increase between 130 and 137 percent depending on customer class and usage.
The new rates are projected to boost annual revenue by $51,625, eliminate the projected $30,482 income deficit and produce a $21,142 net income after total expenses of $78,242 and total revenue of $99,385, according to the PSC order.
The PSC asked the village to take steps to reduce water loss due to leaks in the system, which it said have been excessive since 2011. Water that is pumped and distributed but not billed puts stress on the water system without the utility recovering revenue to maintain the infrastructure, the PSC noted.
Public Works Director Robert Radzwilowicz has been searching for the location of the leak or leaks, but "he's the only man" the village can assign to the job, Wyss said.
Last year was an unprecedented busy year for the utility, which had a well house and water mains replaced and new man holes installed, Wyss said.
Like the crumbling well house, the water leak issue is another problem that was neglected by the village, said Wyss. However, new board members want to address problems and utility rates in a timelier manner, she added.
"This won't happen again; we'll stay current with rate cases. I'm hoping we don't have to do this for quite a while, but the new board knows we need to stay current and can't just do a few 3 percent increases and let bigger rate increases go for 20 years," she said.
Although the PSC last approved a full rate case for the village in 1998, it authorized simplified 3 percent increases in 2006, 2007, 2008, 2015 and 2017.