The city of Keyser faces a couple of unpleasant chores if it wants to get started on its pressing $11.5 million water system upgrade. Like medicine that tastes bad but is good for you, the city will be better for it in the end.
The first phase of the project, at an estimated cost of $4.2 million, will replace and relocate the water tower at Potomac State College, extend lines to the Hollywood Addition, and replace the main water line along Limestone Road. The second phase, at $7.4 million, will replace the 85-year-old water treatment plant on Water Street.
As with other major infrastructure improvements, the bulk of funding for the work will come from the federal government. However, before the funding agencies will release any money, the city has been directed to:
1. Increase water rates by 30 percent, and
2. Complete financial audits for fiscal years 2008 and 2009.
The water rate increase, which must be approved by the West Virginia Public Service Commission, is actually long overdue. Elected officials don't like raising fees for any service because such actions cost votes, and as a result, Keyser's water rate has not changed in years. It is now among the lowest in the state.
While residents themselves probably don't mind such inaction, an artificially low rate does not provide enough revenue to keep up with expenses associated with maintaining the system. It also makes for a sizable expense when the bill comes due, as it has with the water system upgrade.
The funding agencies require local residents to pay their fair share of any such project by adjusting water rates. After months of analysis, 30 percent is the figure they've developed.
That's the price Keyser must pay for putting off incremental increases for so many years.
As for the audits, the city has been chronically lagging in completing its year-end financial reports. This spring, City Hall released audits for fiscal years 2005, 2006 and 2007. That's anything but timely.
Residents have a right to know how their tax dollars are being spent, and an annual audit conducted by an independent, outside accounting agency is the best way to ensure accountability.
Before the feds give Keyser any money toward improving its water system, they want a clear picture of city finances, and the audits will provide that.
Hopefully the water project will spur city officials to get in the habit of completing audits in a timely manner, every year.
