Part 1: Deciphering the New Rates and Billing
Earlier this year the Town Council and Mayor requested and received a Rate Analysis Report for the Town of Snow Hill. The Snow HIll Water Supply and Water Treatment facility services all residents, businesses and organizations (churches, county offices, schools, etc.) located within the geographic boundaries of the Town. The report was written by Jean Holloway, a Snow Hill resident who is also the Delaware and Maryland State Manager for the Southeast Rural Community Assistance Project, Inc. (SERCAP)1.
In the report, Ms. Holloway outlines both the deficit at which the Water Treatment Facility has been operating for many years, and a plan for changing the way fees are collected and applied toward the operation and maintenance of the plant moving forward. One of the major issues involved in operating the plant safely, and within state and federal laws, is the effluent that flows through the plant and is treated. There are standards for what comes in and what goes out, and each plant is tailored to address the needs of its community. However, since the Snow Hill water/sewer rates had not been increased in over 20 years, the former Superintendent sought to cover the cost of operation and maintenance by receiving septic waste from private companies. While this was not an unusual or uncommon decision to make, the management of the additional waste was not effective, and left the plant overburdened and inefficient.
Prior to adopting the 2024 budget, the Town’s Mayor and then-Council2, discussed and deliberated the findings in the report and agreed that the base rate for water and sewer service needed to be increased in order to cover the costs associated with managing and maintaining the plant. The Mayor’s recommendation was to adopt the recommended break-point for calculating the base rate of 6,000 gallons of water used per quarter, as that represents the lowest increase per metered property. The increased base rate for sewer service, this quarter, increased nearly 100% and many Residents are struggling to come up with the additional costs associated with their service.
The base rate is now calculated as follows per 6,000 gallons used:
Current Rate vs. Previous Rate
The rate report discusses how these rates were determined and how the revenues will be applied to operate and maintain the infrastructure and plant from now on.
| Current | Past | |
| Water service base rate: | $50.00 | $35.00 |
| Usage Rate: over 6,000 gal. | 7.70/1,000 gal. | 5.90/1,000 gal. |
| Sewer service base rate: | $135.00 | $73.47 |
| Usage Rate over 6,000 gal. | 12.35/1,000 gal. | 5.69/1,000 |
As a comparison, here is our bill from July 2023 versus October 2023:
Our water service fees increased from $50.27 to $69.87, an increase of 38.99%.
Our sewer service fees increased from $83.48 to $166.86, which represents a nearly 100% increase (anticipated in the table above)
Analysis of the New Rates
Our water consumption for the third quarter bill (10/01) was 820 gallons more than the second quarter, and 2,580 gallons over the 6,000 gallon threshold, thus increasing our per gallon charge by an additional $19.87 at $7.70/1,000 gallons.
Gallons over 6k X $7.70 / 1,000 (“/” = divided by) 2,580 X $7.70 = /1,000 = $19.87 Our total water charge is the base rate of $50, plus the additional charge of $19.87 for a total of $69.87
Our sewer consumption charge was calculated on the same 2,580 gallons over 6,000 at a rate of $12.35/1,000 gallons, resulting in an additional charge of $31.86
Gallons over 6k X $12.35 / 1,000 (“/” = divided by) 2,580 X $12.35 = 3,458/1,000 = $31.86 Our total charge is the base rate of $135, plus the additional fee of $31.86 for a total of $166.86
There is still some ambiguity about how the fees are calculated, given the lack of detail on the bill. And, in our case, the increase of 2,500 gallons from one quarter to the next is not readily explained as well, especially considering the number of days is nearly equal (92 in July versus 91 in October). But the charges are accurate according to the adopted increased rates.
Another issue with how water and sewer rates are calculated is that the same number of gallons of water are used for both the water and sewer fee calculations, which is a limitation of most of the meters currently being used in town. However, a more accurate way to measure consumption and usage would be to meter the water coming into a home (unit), and the waste water flowing out through the sewer line. This would more accurately measure the volume of water consumed and sewage service required per household/unit. And, more accurately assess usage for homes with pools, irrigation systems, watering plants and gardens, use of drinking water, etc.
Town Residents are beginning to do neighborhood audits of usage and bill comparisons in the Western District (west of Division St./Gunby St./Mumford St), and south of Market St.). The intent is to provide the Town Staff, and the Mayor and Council with real data on water consumption and sewer usage, as well as assist with identifying options for new meters that can accurately measure (and report) usage for each separately. The same audit can be conducted in the Eastern and Central Districts using data from recent census and voter registration lists. Get in touch if you’d like to lend a hand! All it takes is a couple of hours going to see your neighbors.
At the November 14, 2023 Town Council Work Session, the Town’s Finance Manager, Lounell Hamstead noted that the Town of Berlin is in the process of replacing their existing meters with ARPA funds provided by the Federal Government during the COVID shutdown in 2020. Town Manager Rick Pollitt said he and staff would work on developing a report on possible options for meter replacement.
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If you have questions regarding your bill, the rate calculations and/or number of gallons used, you can contact the Town Clerk, Connie Watson (link here) or your Town Council Representative.
If you are reading a hard copy of this, you can access information from the Town’s Web site:
Town Staff:
http://www.snowhillmd.gov/town-departments.html
Mayor and Town Council:
http://www.snowhillmd.gov/mayor–council.html
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Future planned posts related to water service in the Town include:
- A dive into the 2023 Rate Analysis Report with further feedback from officials
- Summary of proposed January Town Council Work Session regarding water service in Snow Hill
- Analysis of Snow Hill’s Water and Wastewater Treatment Plant operations related to other incorporated towns on the Lower Shore (Ocean City, Princess Anne, Salisbury)
The Lower Shore Observer 