Water Planning Committee Seeks Self-Sufficiency in Customer-Friendly Incentives
At Monday night’s Vance County Board of Commissioners meeting, the Water Planning Committee discussed its plan for self-sufficiency for the county water system by presenting two possible incentives focused on the goal of attracting a new customer base.
The first incentive called for “forgiving” the outstanding balance of availability customers once they have been connected to the water system for a period of time. Availability customers are the portion of active customers who signed up for the water system, but never made an actual connection.
According to County Manager Jordan McMillen, there are currently a total of 434 availability customers who are responsible for a $30 monthly fee as a result of their commitment to the system and having water available to their property.
The second incentive presented to the Board would allow existing/active customers to receive a credit on their bill for referring a friend or neighbor who becomes an active water customer. This referral incentive would only apply to existing/active customers.
Both incentives aim at increasing the water system’s customer base. The county water system currently serves 1,282 active customers in the Sandy Creek, Dabney and Williamsboro townships, with 848 metered customers hooked into the system.
According to McMillen, the total number of current metered customers comprises slightly more than half of the overall number needed to reach self-sufficiency. “To achieve self-sufficiency, we need approximately 1,500 to 1,600 active metered customers. Our multi-year financial plan for the system includes converting more availability customers to active customers as well as adding new customers to the system to alleviate a situation where the county is providing approximately $400,000 a year from the general fund to offset and subsidize the water system,” stated McMillen.
McMillen noted that it is typical for a new water system to be subsidized for a period of time while the customer base builds. He believes incentives and current customer satisfaction will go a long way into building the necessary customer base. “The incentives discussed are being proposed as a way to add customers. Once they join the system, they are happy with what they are receiving, they like the fact that water is available when the power is out, and they have peace of mind not having to worry with wells drying up, well pumps or related issues,” McMillen remarked.
After hearing the incentive proposals, the Board instructed staff to develop the necessary language and specifics to move forward with the customer referral incentive for consideration at the water committee’s February meeting. The committee then plans to bring the more developed customer referral program language back to the board of commissioners for consideration at their March meeting. The Board was not in favor of the outstanding balance forgiveness proposal at this time.
In addition to the discussion of the two incentives, the committee also heard from three availability customers and one active customer who favored eliminating the $30 fee and replacing it with an annual tax or another type of assessment.
McMillen acknowledged that the challenge with eliminating the availability fee is making up the difference elsewhere. “The challenge with eliminating any fee is that it widens the gap in funding that is necessary to reach self-sufficiency and essentially requires a different revenue option or fee to fill its place,” explained McMillen.
While the committee works diligently to reach its goal, McMillen reported that the system is keeping its current customer base happy. “The water committee is continually looking for ways to decrease expenditures, add customers, and increase revenues to bring the system to self-sufficiency. As the committee continues to do this, we are cognizant that the water system is serving citizens and satisfying a need for quality drinking water and fire protection throughout the county,” McMillen stated.
