Newark Water Rates Memorandum
Date
2008-10-17
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
I wish to share the initial results of our water rate survey of over 60 water purveyors in Delaware and surrounding states of Maryland, New Jersey, and Pennsylvania. Excerpted are results for the six public and private purveyors in New Castle County. We update the water rate survey every 4 years; the last editions were in 2000 and 2004. In 2000, Newark’s water rates were very low, in the lowest 10% percentile of all purveyors surveyed in 4 states. Our earlier water survey was used by Newark to incrementally raise water rates to a level still very affordable to City residents and fund the Newark Reservoir. Presently, Newark’s water rates are in the 30th percentile, still quite low compared to other purveyors in Delaware and in adjacent states.
We recommend raising water rates for those customers who live outside the City limits but are served by the Newark water system. The enclosed map of the water system indicates that these neighborhoods are situated mostly east of the City. These customers are not taxpayers to the City nor are they represented by the City. Taxpayers within the City are subsidizing the low water rates for these outside of city customers. Considering that private water purveyors charge almost 50% to 100% more in adjacent neighborhoods just a few blocks away, we recommend that the City of Newark raise outside of city water rates by at least $100 to $200 per customer per year. The enclosed table indicates the projected increase in outside of City water revenues would be $200,000 per year assuming 1000 customers and an increase of $200 per customer.