JAY — Selectpersons will hold a public hearing at 6 p.m. Monday, May 9, at the Town Office before setting the sewer rate for 2016-17.

The rate will go into effect July 1.

The minimum sewer-user fee is currently $250 for up to 3,200 cubic feet of water. Any amount that exceeds 3,200 feet costs 8 cents per cubic foot.

Since the town changed to billing sewer customers based on water consumption from a per-unit fee July 1, 2011, selectpersons have maintained the $250 minimum fee for up to 3,200 cubic feet each year. 

During the same time, they raised the rate for usage over the minimum amount from 5.58 cents to 8 cents per cubic foot.

The idea behind the change from billing per unit to a water usage method was to charge those who used the sewer system more, and those who used it less would not have to pay as much. It was also implemented to gradually increase the sewer rate with the goal of raising enough revenue to cover the operation and maintenance costs of the department.

The cost to run the Sewer Department is paid by user fees and general taxation. 

The revenue generated from the sewer-user fees for 2015-16 is $419,424. It covers about 76 percent of the $551,950 operation and maintenance budget, according to information from Mark Holt, superintendent of the Sewer Department.

The proposed cost for the 2016-17 operation and maintenance budget is $541,020 and the debt service is $286,652 for a total budget of $827,672.

Holt gave selectpersons several scenarios to consider prior to setting the rate.

Among them is to keep the minimum-use fee at $250, and raise the amount that exceeded the 3,200 cubic feet to 9 cents per cubic foot to generate about $435,750 in revenue. 

In order to cover 100 percent of the operation and maintenance budget and keep the $250 minimum fee, the amount that exceeded it would have to be set at 13 cents per cubic foot.

If the minimum-use fee were increased to $275, the amount to cover 100 percent of the operation and maintenance budget for the amount exceeding the minimum usage would have to be set at 12.3 cents per cubic feet.

If the rate stays as it is this year, the revenues would cover about 76 percent of the operation and maintenance budget and 49.5 percent of the total budget, Holt said.

dperry@sunmediagroup.net