Carefree water company discusses rate hike
by Brian DiTullio

CAREFREE – No numbers are being forwarded yet, but Carefree Water Company has begun the process for a possible rate increase.

Manager Stan Francom presented his methodology for a rate hike at the regular water company meeting Aug. 7.

Board President Wayne Fulcher noted there hasn’t been an increase in rates for several years and that the cost of doing business has risen in the intervening time period.

“It’s time for us to address those cost increases,” Fulcher said, adding the process includes public hearings, the first of which is scheduled for 5 p.m. Aug. 21.

Francom provided the water board with a “basis” for considering a rate hike. Number one on the list is higher costs and increasing usage of surface water resources. Carefree now uses 700 acre feet of water a year, up from 68 acre feet in 1999. This has led to additional costs as power, CAP purchases and other operating factors have become more expensive.

“We have increased our CAP water usage considerably,” he said.

The water company manager also pointed to stiffer regulatory requirements, such as mandated lower arsenic levels and chlorination, that have added pressure to the budget.

Francom noted Carefree’s relatively high level of water consumption, and suggested the new rate structure could take into account residents who use a lot of water and reward those who use less.

“If the high users cut back, it’ll reduce costs,” he said. “Then we don’t have to buy as much CAP water.”

Although security concerns also were raised, Francom stated most measures to protect the town’s water supply have already been implemented.

When board member Bob Coady asked about obtaining federal funds through the Homeland Security Department, Francom responded that Carefree Water is too small to be noticed by the bureaucrats dispensing grant money.

“Not a chance for a water company our size,” Francom said.

The last rate hike was enacted in July 2005. Current rates are a monthly $28 service charge for meters up to and including one inch for residential service, plus $2.47 for each 1,000 gallons up to 7,000 gallons. The next tier is $3.12 per 1,000 gallons up to 15,000 gallons, and the third tier is $4.75 per 1,000 gallons for more than 15,000 gallons.