Water and Taxes

Two years ago, I explained that the Town of Oriental had a problem with water rates. I pointed out, as I had at Town Board meetings, that the Town had been losing money on water. Not only that, the water system had been subsidized by the general taxpayers.

This meant, among other things, that taxpayers had paid for reduced water rates for the Town's biggest water users.

Our interim town manager has recently done a more thorough examination of costs properly chargeable to the water system. His review revealed that the general taxpayer's subsidy to the water system was even higher than I had thought.

An inevitable consequence of this subsidy is that it reduced tax resources available for other town priorities. Many times over the past few years, Board members have avoided expenditures for projects that residents desired, claiming we don't have the resources. The money ($150 - $250 thousand) unknowingly spent over the past decade subsidizing the water system could have gone a long way toward meeting those needs.