Please find attached the Annual Drinking Water Quality Report for 2022 for the Village of Kinderhook. This report is also being mailed to each residence and business.
Annual Drinking Quality Report ADWQR 2022
As the Village of Kinderhook begins several major projects to improve our water distribution system, budgetary needs will be greater than in years past. For many years, we have been fixing only what breaks and not significantly building up financial reserves for the replacement costs and the system maintenance we anticipate over the next five to ten years.
Our first step in approaching this challenge was to perform an inventory of our water assets and determine what the replacement costs for aging components would be over time. NYS Rural Water Association has been assisting us in this assessment, and it is on-going. What is obvious to us is that we need to have a better plan to meet future financial burdens for replacing aging water infrastructure.
Currently, the village charges one of the lowest rates in all of New York State. The last time our water rates were increased was over 10 years ago. We currently charge $2.00 for every 1,000 gallons used by a residence or business. This equates to five gallons of purified water delivered to each home and business for the cost of one cent. We are proposing to increase rates incrementally over the next three years to $4.00 per 1,000 gallons or 2.5 gallons of water per cent. The revenue from the increased water rate will cover all annual operating, delivery, and purification expenses for the village, which is $100,000 for this fiscal year.
In addition, since the late 1970s, the village has included a “meter rental” fee to water bills. That fee is currently $50 per year. We will be reclassifying this fee to “Water Infrastructure Capital Project Savings Account.” We will use this money to save for future water infrastructure improvement projects. We are projected to save approximately $30,000 per year for future projects.
Finally, we must replace the 100+ year old water mains under Albany Avenue and William Street. We will be moving forward with replacing the water main under Albany Avenue within the next two years in coordination with the federal Transition Assistance Program grant that we received as well as the NY Forward state grant. We are also pursuing a low interest, long-term loan through the New York State Revolving Water Fund. We may need to bond approximately $1M to replace the water main on Albany Avenue if our loan request is not approved. The financing will need to be added to each resident and business owner’s water bill at approximately $56 annually for approximately 30 years. Once the debt is paid off, this fee will be removed. I want to note that we have a closed-loop water system. Even though the water main on Albany Avenue is being replaced, it impacts our entire water delivery system. Our goal is to also replace the water main on William Street within the next two-four years.
The average water bill in NYS is $360 (according to worldpopulationreview.com). The average residence in the Village of Kinderhook uses 54,000 gallons of water annually. With the increased rates as well as the addition of the water main bond and/or loan payments, the average Village of Kinderhook resident is projected to pay $322 annually in fiscal year 2026. This is still below the average water bill across the state, and it puts the village on a financially viable path towards improving our aging water infrastructure.
Thank you again for your patience and understanding. There is nothing more important to the village than the reliable delivery of clean water. This plan will help ensure our ability to provide reliable, clean water in the years and decades ahead.
Mike Abrams, Mayor
Village Board of Trustees
Dale Leiser, Water Commissioner
David Booth DPW Superintendent and Chief Water Operator