Dagsboro Weighs Possible Budget Solutions After Millsboro Rate H - WBOC-TV 16, Delmarvas News Leader, FOX 21 -

Dagsboro Weighs Possible Budget Solutions After Millsboro Rate Hike

Posted: Updated:

DAGSBORO, Del.- Recently the Town of Millsboro increased its water rates from $3 per 1,000 gallons to $5.40 per 1,000 gallons for all water and sewer customers of the town.

This rate is equivalent to an 80 percent tax hike. Some customers, including the Town of Dagsboro, which buys its water from Millsboro, says this hike will be too much for its budget to handle. 

But the Town of Millsboro says the increase is necessary, as its last water rate increase was back in 2008, and the price of chemicals to treat the town's water is now more expensive.

But Dagsboro Town Administrator Cynthia Brought says Dagsboro's budget was set before the town was notified. Brought says Dagsboro already implemented a water rate increase earlier this year, and she was only notified of the increase until she was billed. 

Now, Brought says her budget faces a huge deficit and that will ultimately be passed on to the customer.

"People won't be able to pay it as easily and there will be delays in us receiving the money, which creates another problem."

Brought says water and sewer and taxes are the town's only forms of revenue, and if people struggle to pay their bills, and on time, it throws the budget off even more.

But on Wednesday, Dagsboro discussed possible solutions at its town council meeting alongside SERCAP, Southeast Rural Community Assistance Project, Inc., a nonprofit that works with rural municipalities to help fix their water problems. 

Jean Holloway with SERCAP has been working to consult the Town of Dagsboro with their budget, and presented a lot of background to the public tonight as well as possible solutions for Dagsboro.

According to information provided by Holloway:

• Previously there was a base charge of $35.00 per equivalent dwelling unit (edu)

• There was also a usage charge of $4.15 for each 1,000 gallons used.

• Costs were based on purchased water rate of $3.00 per 1,000 gallons

• Millsboro rate change to $5.40 increased purchased water costs from $65,000 to approximately $129,000

• Maintaining the previously adopted rates will mean a deficit of approximately $117,359 based on the 2020 adopted budget.

Holloway says the following are four possible solutions that could help alleviate the town's budget issues. 

• Scenario #1 – eliminate base charge and determine usage rate to cover the difference

• Scenario #2 – keep the base charge @ $35 and pass through the $5.40 millsboro rate as is.

• Scenario #3 – keep the base charge @ $35, pass through the $5.40 and transfer money from reserves to cover the anticipated deficit

• Scenario #4 – increase base charge to the previous $40 and keep usage rate at $4.15

 

 

  • Most Popular StoriesMost Popular StoriesMore>>

  • Windsurfer Spends Night Stranded on Dewey Beach

    Windsurfer Spends Night Stranded on Dewey Beach

    Sunday, October 13 2019 6:09 PM EDT2019-10-13 22:09:23 GMT
    Monday, October 14 2019 7:35 AM EDT2019-10-14 11:35:25 GMT
    A windsurfer spent a night stranded on Dewey Beach after his sail broke and could not get help.More
    A windsurfer spent a night stranded on Dewey Beach after his sail broke and could not get help.More
  • 3 Men Killed in Bridgeville Crash

    3 Men Killed in Bridgeville Crash

    Sunday, October 13 2019 9:09 AM EDT2019-10-13 13:09:02 GMT
    Monday, October 14 2019 7:32 AM EDT2019-10-14 11:32:29 GMT
    The Delaware State Police Collision Reconstruction Unit is investigating an early Sunday morning single-vehicle crash in Bridgeville that left three men dead.More
    The Delaware State Police Collision Reconstruction Unit is investigating an early Sunday morning single-vehicle crash in Bridgeville that left three men dead.More
  • H20i is a No Show at Endless Summer Cruisin'

    H20i is a No Show at Endless Summer Cruisin'

    Saturday, October 12 2019 11:30 PM EDT2019-10-13 03:30:24 GMT
    Saturday, October 12 2019 11:36 PM EDT2019-10-13 03:36:02 GMT
    It was a seemingly calm weekend at the Endless Summer Cruisin' car event in Ocean City. Rumors of people returning from the unsanctioned H20i event created a buzz in the area.More
    It was a seemingly calm weekend at the Endless Summer Cruisin' car event in Ocean City. Rumors of people returning from the unsanctioned H20i event created a buzz in the area. More
Powered by Frankly

All content © Copyright 2000 - 2019 WBOC. All Rights Reserved. For more information on this site, please read our Privacy Policy, and Terms of Service, and Ad Choices