Sunday, October 6, 2013

Water For Wal Mart

At last week's Town Board meeting, Oriental Town Manager Wyatt Cutler claimed that selling Town water to customers outside the Town (i.e. Wal-Mart) is good, because we make money for the Town. Reference was also made to the fact that the Town agreed to provide water to the Dollar General store, which is also out of Town. Commissioner Venturi pushed the same line.

It is true that the Town has been providing water to Dollar General since they opened.

It is not true that the Town made money from providing water.

It's like the old joke: "we lose money on every sale, but make up for it in volume."

In fact, during the decade from 2001 to 2011, the General Fund (Oriental taxpayers) was subsidizing the Water Fund (water users, including Dollar General) an average of from $35,000 to $50,000 a year.

It could happen again if the Town isn't careful to keep rates high enough to cover ALL of the expenses of operating the water plant, including depreciation.


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