OOB Town Council approves sewer user fee study (Printed April 10, 2008)


By Stowell P. Watters

Staff Writer

Currently Old Orchard Beach’s property owners pay for operational, management and upgrade costs to the town’s sewer water system through the property tax. 

But due to a booming summer population that puts heavy strain on the system and in the name of fairness, Town Councilor Jim Long believes costs should be shared according to use.

“We need to shift some of the burden associated with wastewater from the residents to the tourists,” Long said. 

According to information provided by Long, Old Orchard Beach is one of six communities out of 104 reporting in the 2006 Maine Rural Water Association rate survey still using property tax as a source for revenue to pay wastewater costs.

“Our method is outdated, and is not a fair cost-sharing formula for the residents of Old Orchard Beach,” Long said.

In addition to replacing what he called an “outdated” funding method, Long said the town needs to begin generating more revenue in the summer in order to deal with budget shortfalls. He referenced a 2005 Woodward and Curran study, which recommended the town spend $50 million for upgrades to the wastewater treatment pump-stations and plant.

On April 1, the town council agreed to fund a study exploring how the town would structure their fee. The engineering firm Wright-Pierce is currently drafting the study that looks at ways the town could structure and implement a user fee. 

Town Manager Steven Gunty said there are a number of options available.

“Normally sewer user fees are based on gallon consumption, but we are looking at other options as well,” Gunty said. Those options include charging users based on EDUs, or equivalent dwelling units – a standard, family portioned amount of water. Commercial and industrial users would be charged for multiple EDUs based on their usage and how it equates to that of a single family.

Gunty said a flat fee could also be established for businesses in town. Restaurants, hotels and souvenir shops would be categorized and charged accordingly, he said. Gunty said the town must also be careful of how they treat the summer businesses.

“We need to share costs, but at the same time we do not want to drive business out,” he said.

Old Orchard Beach Chamber of Commerce Director Bud Harmon said he is not certain a sewer user fee would be a negative change for business owners and believes it would offset the cost of the mil rate.

“I will keep an eye on the numbers, but I know the council would not do anything to drive business out of Old Orchard Beach,” Harmon said.

Wastewater Superintendent Christopher White said he supports the fee.

“The town just needs a more fair and equitable system, and the plant needs significant work,” White said.

Richard Rhames, a former city councilor in Biddeford – where a sewer user fee was implemented in the early 1990s – said the plan could end up costing residents more than they bargained for.

“[Biddeford] took all of the capital costs out of the general fund and dumped them on renters in the downtown, poor people that live in the tenement districts of the downtown. It was ridiculous,” Rhames said.

Long said the money from the fee would be put into an enterprise fund, and – while that account would not be the sole source of funding for the wastewater system  – that fund would be used for costs “directly related to repair, maintenance and upgrades to the wastewater system.

Gunty said a fee, depending on the outcome of the study, could be ready for voter consent by the June 10 ballot.

To contact Stowell P. Watters call 282-4337, ext 219 or email news@inthecourier.com. 


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