Albion braces for big increases in rates to pay for upgrades at water plant, infrastructure

Photo by Tom Rivers: The water tower by the Albion Correctional Facility on Route 31 is part of Albion’s water infrastructure. The correctional facilities are charged $4.35 per 1,000 gallons of water.

ALBION – The Village Board said an significant increase is needed in what it bills for water, but the board hasn’t determined just how the higher cost will be spread among village residential users and wholesale customers in the towns and correctional facilities.

The Village Board said a hike in the water rates and base charges will be necessary to pay the debt for more than $10 million in financing for upgrades to the water plant and distribution system.

“We need to do something and we need to do something something relatively soon,” Deputy Mayor Joyce Riley said about the higher water rates.

The village is looking at more than $16 million in water plant and system improvements. The village has been approved for two grants at over $6 million towards the projects.

One project, Water Infrastructure Improvement (WIIA) 1, has a total cost of $5,241,440 with grants paying $1,949,00 with the village to potentially borrow $3,292,000.

The second WIIA has a total cost of $11,418,000 with grants covering $4,250,000 and borrowing for the other $7,168,500.

The village doesn’t start paying the debt for the first project until next year, and then faces another debt payment increase with the second project.

The first project is expected to result in annual debt payment of over $300,000, with the second project even more.

“We’re trying to beef up our water plant to make it more sustainable for the next 20-30 years,” Village Trustee David Buczek said at last week’s board meeting.

The water fund operates on a current $1.9 million budget.

The Village Board in 2022 changed its water charges for residential customers in the village. The rate was actually lowered from $3.61 to $3.39 per 1,000 gallons for the village residents and commercial customers. And the village eliminated a $5 quarterly administrative fee.

The big changes were the addition of a new base charge at $21 per quarter for residents with ¾” meter and how the village does a minimum charge. That was $28.16 for residents and most small businesses and included the first 5,100 gallons of water.

The new system put the minimum at $21.00 per quarter (the base charge) but doesn’t include any water usage. The village starts billing at zero gallons. The change resulted in lower water bills for customers that use less than average water each quarter.

The village is working with a consultant on calculating the new charges and rates. WaterWorth representatives last week presented a plan to raise the base charge by 60 percent in 2025 to $33.60, and then another 40 percent to $47.04 in 2026, and 15 percent more in 2027 to $54.10, with 3 percent increases to follow after 2027.

The water rates would go up 15 percent from $3.39 to $3.90 in 2025, and then 6.9 percent to $4.17 in 2026, another 4.6 percent in 2027 to $4.38 and then 3.0 percent increases to follow, according to the proposal.

The village pumps about 1.45 million gallons a day on average from its plant on Wilson Road in Carlton. The towns and prisons account for about 60 percent of that usage.

The village last year raised its wholesale rates to the towns of Carlton, Gaines, Barre and Albion by 40 cents to $3.34 per 1,000 gallons. (Most of the Town of Albion’s water comes through Barre’s water system and Barre bills most of the Town of Albion. Village water also goes to portions of Ridgeway and Murray, going through the Town of Albion system, with Gaines sending some village water to Murray.)

The correctional facilities, which are outside the village, are billed at $4.35 per 1,000 gallons.

With the towns and prison recently getting the rates increased, the WaterWorth proposal doesn’t show big increases for them.

Albion Mayor Angel Javier Jr. said he would prefer to see the increases spread out among all users – wholesale in the towns and residential and commercial in the village.

Riley, the deputy mayor, agreed that she doesn’t want most of the new debt payments to fall on village residential users. She believes the towns and prisons should also see significantly higher rates to lessen the impact on the village and to spread out the higher costs.

Adam Rush, chief operator of the water plant for the village, said higher wholesale rates for the towns could lead to the local towns switching to the Monroe County Water Authority, where the out-of-county wholesale rates are $2.63. The MCWA is close to Albion’s water system, supplying Kendall and parts of Murray and Clarendon.

If some of the towns switch water districts to the MCWA that will shift more of the operational and debt costs to the village residential and commercial users, Rush said.

Riley believes the towns will stay loyal to the village, which she said offers prompt service if there are water leaks or other issues.

She compared the MCWA and Niagara County Water District to “big box stores” that may be cheaper but don’t provide the care and service to the Village of Albion.

“When the big chains come in, people say it’s going to be the death of the mom and pop stores,” Riley said. “We are the mom and pop store. We provide excellent service. ”

The village’s quick response should be valued by the wholesale users, Riley said.

“We’re in their backyard,” Riley said about the local town customers. “We’re available for service. When people call us, off we go. That is value you don’t get from the bigger counties.”

The board said it will work to finalize a plan on the water rates and base charges, and will have a public hearing soon on the new structure. It also wants a public meeting to go over the planned upgrades at the water plant and the distribution system.

Buczek said the village is in a difficult position where an increase is needed to pay for what he said are long overdue upgrades to the water plant.

He said the village has been living “paycheck to paycheck” with its water system, trying to keep the rates down and not take on big expenses.

“We need to think long-term and about resiliency,” he said.

He believes the public will support the increases in costs when they understand the value of the Albion water and plan to upgrade the water plant for the future.

“We need to change the perception of Albion water and make people aware of the services we provide,” he said.

Rush, the water plant chief operator, said Albion’s water rates are among the lowest in the region.

The Village of Fredonia in Chautauqua County, for example, just raised its rates by $2 from $4.95 to $6.95 per 1,000 gallons.

The city of Dunkirk next to Fredonia also raised the rate on water it sells to the North County Water District from $3.84 to $5.16 per 1,000 gallons.