HomeMy WebLinkAbout1973 09-23 Maplewood's Wholesale Water Purchase Prospects Dampened DISPATCH a
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A 23, 19736
Maplewood councilmen _
last Thur-
But with the proposed rate increase the Maplewood where I would look to for my
sday night that the future possibility of village may want to negotiate on the growth."
purchasing water on a wholesale basis ' situation with the Water Board, Michael
from the St. Paul Water Department has suggested.The council met Tuesday night Weigert believes the village can, at least,
been dampened by the department
in a shirtsleeve session to determine what no longer consider staying with its retail
s
proposal to increase wholesale rates next future action it might want to take. And purchase system. "It's not feasible since
year. the council will meet with Water Board we have to put in capitol equipment.
representatives on August 10.
The rate increase would be necessary to "We're at the point where we can't install
cover an estimated $15 million deficit. In going into business there is an inflated any more mains without knowing what
And although the actual rate increase has cost greater than equity," Michael said. water our source is going to be," he said.
not been set, the Council guessed for "•.But once you get past that point you "We can't continue to ge retail because,
hypothetical purposes, that the increase can obtain water at cost. where do we get the money if we don't go
might be 15 percent as in the past. wholesale or independent?"
"The only way you can have a handle on Manager Miller said the water
future costs would be if you negotiated at
And Kirkham, Michael and Associates, ' availability charge (WAC) would help
the seller's cost plus a `fixed per- ease the village's financial burden.But he
the village's consulting firm which is
studying the possibilities of how centage, Michael continued. That way admits only a water bond issue would be
the seller couldn't lose because he able to get around the state's tax levy
Maplewood could reduce its water rates,
agree. wouldn't have to lose money and the limitation law.
buyer would be assurred of some control
"If that goes through you would be put in over the amount of above board costs." Michael said, "Over the next 30 years
a position of never being able to catch upDespite Wiegert's complaints over the there will be a smaller cumlative
(in costs)," said Bruce Michael, thedeficiency staying with St. Paul.But after
firm's representative. Councilman John water rates, Michael believes the ' St. mat time an independent system or if
Greavu added, "That would price us right Paul people would be coming to you managed well enough maybe wholesale
2, hoping to work outsomething. If I was the
out of the ballpark." t
'� department its communities like purchasing would prove to be a benefit to
leave the St. Paul system."
r
Maplewood currently buys its water retail
from the St.Paul Water Department. But
the councilmen are irked over the
necessity to pay 35.percent higher water
rates than St. Paulites.
"It has never been determined why our II
citizens have to pay 35 percent more
because they live across the street," said
councilman Donald Wiegert. "The St.
Paul water production is accomplished by
a separate entity.
"Residents from St.Paul buy water from
the same corporation as Maplewood
citizens," Wiegert continued. "That
water facility is not supported by St. Paul
nor does it in turn furnish funds to St.Paul
for its separate support."
Wiegert said he could understand the rate
differential if the Water Department
received support from St. Paul. But he
added, "We supply capitol equipment
with those rates for water production for
St. Paul residents. In addition we supply
extra rates up to the tune of 35 percent of
which we derive no capitol equipment,
and when we need reservior and pumps
out here we have to pony up that above
what we pay already."
The consulting firm appeared to tell the
council that the St. Paul's wholesale
water rates had been originally
terpreted in a supplemental report. but
that wholsale purchase changeover
would still reduce overall water rates
faster for Maplewood citizens that a move
to establish an independent water system.