Albion plans big water rate hike to pay for improvements to infrastructure, water plant

Photo by Tom Rivers: The Village of Albion has a new 750,000-gallon water tank on Route 98, part of the Village of Albion water distribution system primarily in central Orleans County. The new glass-fused steel tank was built for $1,369,000 by Aquastore.

ALBION – The Albion Village Board expects to raise the water rates significantly, about 50 percent over the next three years.

The increases are needed to pay for upgrades to the water plant and aging infrastructure.

Village Board members will present the rates during a public hearing today at 6 p.m. at the Village Office. The new rates would take effect on Jan. 1.

Water users would face a 25 percent increase in the rates in the first year, then a 20 percent increase in year two, and then a 5 percent increase in the third year. The village would also raise an administrative charge by 55 percent the first year, then 40 percent and 5 percent.

The changes would raise rates for village of Albion residents and property owners by $3.90 per $1,000 gallons to $4.88 next year, $5.85 in year two and $6.14 in year three.

The average village water customer currently pays $92.10 every quarter. That would change to $125.21 next year, then $160.66 in year two, and then $168.70 in the third year, according to village.

The village also supplies water to several towns in Orleans County. They would see their rates go from $3.57 to $4.46 next year, and then $5.36 and $5.62.

The two correctional facilities would be increased from the current $4.65 per 1,000 gallons to $5.81 next year, and then $6.98 and $7.32.

Village Trustee Joyce Riley said the increases are necessary, but she worries some of the towns could switch to the Monroe County Water Authority, which would take away needed revenue for the water system.

The board during a Sept. 10 meeting considered making a 50 percent increase in the first year, but decided to do a staggered approach over three years.

 The village is embarking a major capital project at the water plant on Wilson Road in Carlton. The village also replaced a water storage tank on Route 98 and needs to replace many of its transmission lines.

The Albion water fund has estimated expenses of $2,639,864 in the current fiscal year, but the current rates only will generate $2,195,250, forcing the village to use $444,614 in its fund balance. That will leave the fund balance at about $700,000.

The new rates and administrative charges would bring the revenues to $2,680,546 in 2026-27, while the expenses are at $3,021,857. (The expenses increase because the village needs to begin paying back a bond at about $400,000 a year.)

The second year, the revenue is up to $3,328,013 with expenses at $3,172,950. The third year, the revenue totals $3,494,414 with expenses at $3,331,597.

Village Board members said they will be working to develop a capital plan for the water plant and water distribution system.

Wendel, an engineering firm, presented a proposal on Sept. 10 for replacing some of the water lines on the east side of the village, a project that could top $13 million.

That project would include East State Street, from Platt Street to the village line (including Goodrich Street), Moore Steet (from the Butts/Caroline intersection to the village line, Brown Street and Knapp Street.