Keene city councilors approve water-rate increase

Sep. 16—Keene residents and businesses can expect higher water rates beginning in November following a vote for the increase at Thursday night's City Council meeting.

Councilors voted 13-1 in favor of an ordinance to up the volumetric rate to roughly $5.35 per 100 cubic feet (nearly 750 gallons of water) from $5.06, or nearly 750 gallons of water, which will take effect Nov. 1. Ward 2 Councilor Bobby Williams was absent from Thursday's meeting.

Finance Director Merri Howe previously told The Sentinel that average residents will see an increase of about $5 in their quarterly water bill after the ordinance is active, which Keene Public Works Director Kürt Blomquist confirmed Friday morning.

Ward 5 Councilor Thomas Powers said the rate increase is needed because it's the "cost of doing business," as he said prices for chemicals to treat water and prices of fuel for water-department vehicles have increased. He noted he felt the council's Finance, Organization and Personnel Committee recommended a "very modest package."

In response to a question from Mayor George Hansel about the ramifications, City Manager Elizabeth Dragon said the city's water fund is deficient with a roughly $1 million balance, which covers only about 110 days of the water-department's operating expenses. She said ideally the department should be prepared to operate 270 days and that a rate adjustment could help boost available funds.

Howe told The Sentinel in an Aug. 30 email the rate increase could bring the city $250,000 in revenue to match the budget of the 2023 fiscal year.

Ward 3 Councilor Andrew Madison told the council his vote was a "reluctant 'yes' "because while he didn't want to raise rates, he said it's important to ensure the city's medical facilities and nursing homes have clean water from a water department with a stable funding balance.

"This year has been absolutely brutal, as everyone knows, as far as rate increases literally across the board in every facet of people's lives," Madison said. "[But] if we don't do small incremental increases, then next year or the year after we're going to have to pay the piper."

At-Large Councilor Randy Filiault was the lone vote against the ordinance, as he said he feels some Keene citizens are struggling to afford basic expenses due to inflation and increases in home heating-oil costs. He felt it was also "voodoo economics" in that it felt like residents being asked to conserve water will still have to pay more.

"For the last several years, we've told our constituents ... the cost of water is going up ... [and they] need to get efficient [appliances] ..., don't use too much water washing your car, don't water your lawns; cut back," Filiault said in the meeting. "What is their reward? Increased rates."

At-Large Councilor Michael Remy countered Filiault and said 74 percent of the city's population uses less than 1,800 cubic feet of water quarterly, citing a report citing a report Keene Public Works Director Kurt Blomquist presented to the FOP Committee on Sept. 8 stating 90 percent of Keene water customers are on residential water meters.

The fixed quarterly rates for these meters and 3/4 -inch meters, used in residential buildings, will decrease from $24.36 and $36.53 to $24.33 and $36.50, respectively.

For 4- and 6-inch meters, which see more commercial applications, fixed rates will decrease from $608.88 and $1,217.76 per quarter to $608.26 and $1,216.52, respectively.

"Ninety percent [of residents] ... [are] going to see an actual reduction in the fixed amount, so ... if they reduce their water, they're going to see a reduction," Remy said. "The bulk of the increase is not on the residential side, it's on the commercial side."

Ward 5 Councilor Philip Jones showed solidarity with Filiault and expressed concern that raising water charges could also affect expenditures for local businesses. Nonetheless, he voted for the increase as he said he didn't want the department to have a shortfall in funds and asked that the city consider a "business approach" by having varying rates throughout the day.

"During the busy hours during the day, the rates go up, and they stay down at the lower-use hours at night, maybe from 5 p.m. to 7 a.m.," Jones suggested.

Among other actions at Thursday's meeting, councilors approved an ordinance increasing funding for city cemeteries; a resolution recognizing city employee Diane C. Richards Stauder, who retired; and a resolution to redevelop fuel storage areas at Dillant-Hopkins Airport, using a mix of city funds generated through the sale of property at the airport in North Swanzey and Federal Aviation Administration funding

Also at Thursday's meeting, councilors approved a request from the Keene Fire Department to use city property to host its annual fire prevention parade on Oct. 9 and Hansel delivered a proclamation thanking retired city revenue collection office staffer Mary Alther.

Trisha Nail can be reached at 352-1234, extension 1436, or tnail@keenesentinel.com. Follow her on Twitter at @byTrishaNail.