JAY — Selectpersons will hold a public hearing Monday, May 11, before setting sewer rates for 2015-16.

The meeting begins at 6 p.m. at the Town Office.

Mark Holt, superintendent of the Sewer Department, presented the board with information on sewer rate scenarios and the operation and maintenance budget for the July 1 through June 30, 2016, on April 27.

The town changed its method of calculating the sewer rate based on water use on July 1, 2011. Prior to that, it was based on a per-unit method.

The goal is eventually to have sewer users cover 100 percent of the department’s operation and maintenance budget. Townwide taxation covers the cost of debt service.

The current rate is a minimum sewer fee of $250 for up to 3,200 cubic feet of water used. Amounts above that cost 7 cents per cubic foot of water used. It is expected to cover 73 percent of the operation and maintenance budget this fiscal year.

The operation and maintenance budget for 2015-16 is $551,950 and debt service is $289, 424 for a total Sewer Department budget of $841,374, according to Holt’s information.

Among the rate scenarios Holt submitted is keeping the same rate, which would generate about $387,040 and cover 70 percent of the operation and maintenance budget.

If the minimum use rate stayed the same and the amount used over it was increased to 8 cents per cubic foot, it would generate about $413,510 and cover about 75 percent of the operation and maintenance budget.

If the amount of use over the minimum was set at 9 cents per cubic foot, it would generate about $439,980 and cover 80 percent of the operating and maintenance budget.

In order to cover 100 percent of the operation and maintenance budget and keep the minimum rate the same, the board would need to set the amount that exceeded it at about 13.2 cents per cubic foot. That would increase the revenue to about $551,950, Holt’s data shows.

Holt also calculated scenarios that increase the minimum base fee. One of them was to make it $275 to cover 4,000 cubic feet of water use, and set the amount that exceeds it at 8 cents per cubic feet. It would generate about $413,685 and cover about 75 percent of the operation and maintenance budget.

dperry@sunmediagroup.net

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