OXFORD – Village of Oxford residents will face a 2.2 percent tax levy increase as well as higher water and sewer rates in the coming year as a result of the spending plans adopted by municipal leaders following a public hearing Tuesday.
According to budget documents, the village’s general fund budget will total $1,000,000, an increase of $21,240, or 2.2 percent, increase over the current fiscal year. In a written narrative, Mayor Terry Stark described the change as a “modest inflationary increase” necessitated by rising employee pension and health insurance costs, which will increase by 14 percent this year. At the same time, there has been a 28 percent decline in revenue from fines and forfeitures. Stark said he expects these to be partially offset by expected increases in sales tax revenue and cable franchise fees.
Water rate increases went into effect April 1. Residents will see these changes reflected in their July 1 water bills. The quarterly base rate for those living within the village limits and in the Town of Oxford Water District #1 will increase by $1, from $37 to $38. Usage over and above the quarterly minimum of 4,000 gallons will remain at $3.50 per thousand gallons.
For those living outside the village, the quarterly base rate will be $40, with excess usage charged at $3.70 per thousand gallons.
According to Stark, the increase was necessary because of the continued drop in consumption, which contributed to a $3,000 budget shortfall in water revenue this year.
“Less water is being consumed per household, likely due to a sagging economy,” the mayor said, explaining he anticipates another 10 percent drop in 2011-12.
New sewer rates also went into effect April 1. In their July 1 bill, residents will see a $2 increase in the quarterly base rate, from $33 to $35. Excess usage will go up 35 cents to $6.25 per thousand gallons over the quarterly 4,000 gallon minimum. This is the second sewer rate increase in as many years. According to Stark, the higher rates will help the sewer department offset a 2.3 percent increase in its overall budget, which will total $240,000 for the 2011-2012 fiscal year.
“The increase is due to an interest payment due for the RBC loan pending permanent funding of the Waste Water Capital project via U.S. Rural Development,” he explained.
At the same meeting, Local Law #1 of 2011 was adopted following a separate public hearing. The law amends existing village water codes. Changes include a $50 increase in fees associated with establishing new water service. The rate charged to village residents for filling their swimming pools from fire hydrants doubled from $5 to $10 per thousand gallons.
In addition a rate of $10 per thousand gallons was established for bulk water purchases, such as for farms and construction companies. According to Village Clerk/Treasurer Sherry Behe, Oxford has not been approached by any natural gas company seeking to purchase bulk water.
Some sections of the existing law were also clarified, and terminology was changed to reflect modern usage. The section concerning rates was replaced with a more simplified schedule for clarification purposes.
The new code will also allow village leaders to make changes to the rules, regulations and rates for the use of water by board resolution, rather than local law.