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By Mila Besich Lira
The Kearny Town Council voted last week to begin the process to raise the water fees for Kearny water users. This vote came after much discussion and the overall need to have a permanent water solution in place for the Town of Kearny.
The drought continues to affect the water flow in the Gila River causing officials in Kearny to secure other water sources for the community. In 2004 a federal judge ordered the Town to come up with a permanent solution to securing a water source outside of the Globe Equity Decree No. 59.
In the eight years since that order the Town had not found a permanent solution and was able to work through the various water conditions. This year has been the most the challenging for the town with only 70 AF of water being allocated from the Globe Equity Decree No. 59. The town needs at least 350 AF to serve the residential and business customers in Kearny.
ASARCO agreed to convey to Kearny 350 AF of their Central Arizona Project (CAP) water apportionment, as long as the 350 AF is reallocated to Kearny. The allocation of that water will be until December 31, 2013. This time frame will allow community leaders to purchase CAP water on their own.
In order for the solution to be permanent theTown will need to pay to maintain the 350 AF of CAP water every year,should the Town need CAP water in the coming year, the Town will have to order the water in Oct. of each year.
The charge to maintain the CAP water is $15per AF or approximately $5,250 a year. The delivery charge is an additional $137 per AF, minimum. The total charge to the Town could be from $53,200 to $65,000 a year.
ASARCO did not charge the town for maintaining the water, which is worth $255,000.
In order for the town to financially cover the cost of the permanent water solution they are going to have to raise the waters rates by adding a flat fee per customer. The increase will be $6.25 a month, for 830 utility customers, raising a total of $62,250 by December 2013.
Should the town need to purchase water in 2014 there will be $62,250 to cover the costs. The increase would be a separate flat fee that would be paid regardless of the amount of water ordered. The money would be kept separately from other town or town utility funds and will only be used to purchase and transport CAP water as needed.
If the town does not need to purchase water the funds would carry over to help build a reserve.
When the council voted at the Oct. council meeting that triggered the rate increase process. There is a public hearing scheduled on Nov.19, 2012 at 7:30 p.m. Following the public hearing the council is expected to vote on the increase.
If the resolution to approve the increases passes the town council residents can expect to see the increase in their bills beginning Jan.1, 2013. The public hearing will allow the public to comment on the increase and learn more about the purchase and increase. Residents needing more information should contact town hall.
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