CAPE MAY — Water consumption in the city is down 8 million gallons from the same time in 2008, a year where water use fell drastically.
The drop may reflect the recession’s effect on tourism or cool and rainy weather for much of June.
As a result of low water consumption last year, City Council approved a water/sewer fee increase Feb. 17 that raised rates for residential users about 25 percent.
The city’s water/sewer utility is dependent on consumption from customers to balance its budget. A total of 18 million less gallons of water was consumed in the city last year.
In 2008, the city collected $333,000 less in water/sewer revenue attributed to fewer tourists and year round residents and shorter stays from second home owners. Household and business water conservation also contributed to less water consumption.
The reduced revenue resulted in $200,000 less in the utility’s surplus account.
City Manager Bruce MacLeod reported to council, at an Aug. 4 meeting, the readings for the second billing period of 2009 that included peak summer use to the first 15 days of July. He said for the first seven months of 2009 water use was down 8 million gallons: 103 million gallons in 2008 compared to 96 million gallons this year.
MacLeod said the decrease also affects the sewer utility.
The report included water consumption from West Cape May, Cape May Point and the U.S. Coast Guard base, all of which purchase water from Cape May. He said Cape May Point was showing a reduction while West Cape May and the Coast Guard were slightly behind 2008 water consumption figures as compared to Cape May City.
Mayor Edward J. Mahaney Jr. said council is assembling a water/sewer study committee to review the financial set up of the utility prior to the start of Fiscal Year 2010.
Since the city is seeing a continuing reduction in water consumption, MacLeod recommend council move forward with the study committee to look a rate structures and methodology of building. He said the work of the committee was not to examine the water/sewer utility’s budget.
MacLeod said the city would look at the rate structures of neighboring towns.
The mayor said the committee should dissolve by June 30, 2010. A list of possible committee members has been distributed to council. Anyone interested in serving on the committee, make contact the city clerk.
Councilman David Kurkowski will serve on the committee along with Mahaney and MacLeod.
The city’s system of billing is 90 percent driven by consumption and 10 percent by fixed costs for city residents and 100 percent consumption driven for water sold to other towns and the Coast Guard. Less consumption has a major impact on our revenue stream said MacLeod in February.
