Rate Rise Likely as Water District Faces Deficit

Water rates will likely be on the rise in Riverhead – though according to town officials, outside contractors had suggested a couple of years back that the town should be upping its rates anyways.

Last week, Water Superintendent Gary Pendzick met with members of the town board, who seemed to be in agreement that a 10-cent increase in the town's $1.40 rate would be suitable, considering the money laid out to increase capacity.

The capital improvements – paid for with $5.48 million in borrowed funds – have also helped contribute to a $200,000 operating loss in the water district. In addition, the district had to borrow from the town's general fund last year – funds that have to be paid back into the town's reserves – to help close its gap.

While H2M engineers reportedly suggested increasing the rate to $1.50 a couple years ago, town leaders suggested a more modest approach to see if it could keep from holding off higher rates, instituting a 10-cent increase last year – the first boost in over two decades, officials said last week.

But a budget gap remains in the district, in which Sueprvisor Sean Walter said has seen capacity rise from 84 percent of its daily need to over 120 percent.

Many residents won't feel the increase, however. A flat $10.90 quarterly bill is charged to residents, which covers the first 5,000 gallons of use. After that, each 1,000 gallons is currently subject to the $1.40 rate.

Those who might get washed from the higher rate would be homeowners who regularly water their lawns – big lawns.

"Irrigation is the kiss of death," Pendzick said in an interview. "For a place that has one-and-a-half to two-acre zoning, who has 35,000 square feet of lawn, they can use 200,000 to 250,000 gallons of water in a three-month period."