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Rehoboth shouldn’t change rate structure

June 25, 2019

While Rehoboth has only 1,500 year-round residents, it has built a 3.5 million gallon per day water and sewer system, which is enough to serve 35,000 to 43,750 people per day, based on the estimated daily need of 80-100 gallons per person. Of course, it is the summer influx that drives the demand for such a large infrastructure, and for the trained staff needed to operate the facility.

Summer users generate the greatest demand costs to the system, yet are here for only part of the year to help pay for it. As a result, Rehoboth has charged a higher usage rate in the April-September peak season, then a lower off-peak rate for the steady, less costly year-round users. This has been the method recommended by utility experts as the most equitable means to generate the revenue to cover the cost of the system.

Unfortunately, we have learned, that at the special utility rate meeting this Thursday, June 27 at 9 a.m. in city hall, the mayor’s recently appointed Utility Working Group (who are not utility experts) will be recommending city commissioners dispense with the peak/off-peak rate structure and institute a flat year-round rate. This will shift costs from the expensive summer users to year-round users, who are predominantly residents and small year-round retailers. In addition to the rate increase, the group will also recommend increasing bill preparation fees for small meter users, while lowering those fees for all the larger meter users.

At the time of the referendum for voting on bonds for the ocean outfall, citizens were advised to expect a 60 percent increase in wastewater costs, but there was no mention of changing the rate structure itself.  For the commissioners to change the rate structure now represents a breach of faith with the voters.  It’s not too late to let them know your concerns.

How the commissioners vote on this issue will be very telling to the residents of Rehoboth, as to who matters more and who matters less.

Donna Mabry
Rehoboth Beach

 

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