Editor’s note: This Q&A was written by My Buckhannon owner and publisher Brian Bergstrom.
There’s been a lot of discussion on social media about the City of Buckhannon’s water rate increase to fund a new water plant. I’d like to address some of the most common questions I’ve seen — the ones that seem to come from genuine curiosity rather than hostility.
“Why a new plant?”
Over the past few years, the city has studied what improvements our water plant needs. The key question was whether to renovate the existing facility or build a new one. The answer? Replacing the plant would actually cost less than continually pumping millions into updates every few years.
The total project cost is $47 million, which includes the new plant and updating various water lines. The city has already approved financing for the initial $6 million to handle prep work and get things started.
“My water bill is already $130!”
As Mayor Robbie Skinner and City Recorder Randy Sanders emphasized at a recent council meeting, what we often refer to as our “water bill” is actually our utility bill. That bill typically includes water, sewer, and trash pickup, as well as police, fire, and other fees, if you live within city limits.
Only the water portion is increasing — not sewer, not public safety fees, not trash. Yes, 60% is a significant increase, but when calculating your actual cost, look only at the water line item on your bill, not the total.
“Don’t forget about that other tax — wasn’t it 1% on everything we purchase?”
This gets at an important point about how utility boards work. They’re regulated by the state Public Service Commission and operate much like a regular business — they sell you a product and charge you for it. That’s their source of revenue.
In this case, that product is clean water.
Utility boards don’t receive property taxes or sales taxes. They’re supposed to provide service at cost, nothing more.
“Didn’t the city just give thousands of dollars to the college?”
As noted above, the utility boards are financially independent from the city’s general revenue fund. The money the city spends on roads, public safety, parks or other projects comes from separate sources — property taxes, sales taxes and other general revenue.
Where city council spends those funds has nothing to do with the water rate increase. I know some of you may not believe it, but that’s the law.
“Hasn’t the water board been making money all these years? Shouldn’t they have savings?”
Utility boards aren’t supposed to operate at a profit. They can’t overcharge residents for decades to stockpile $50 million for a new plant. When they need funds for major infrastructure, they raise rates accordingly.
In many ways, that’s preferable to being overcharged for 40 or 50 years, even though a significant rate increase does sting.
“I thought the new plant cost $6 million — that’s what the headline said.”
That’s the approved amount for the initial phase — engineering, prep work, property acquisition and getting the project underway. The total project cost is $47 million.
“If they got a loan and already have the money, why raise rates?”
A loan is different from a grant — loans must be repaid. The bank is lending the city $6 million now, which will be paid back over several years with interest. The water rate increase covers those loan payments, as well as future payments to complete the project.
“But why can’t they get a grant? They get grants for everything else.”
The city does anticipate some grant funding, which is already factored into the rate increase. Ironically, Buckhannon’s water rates were so low — among the cheapest in West Virginia — that we probably wouldn’t qualify for many grants. To be eligible, the rates need to be closer to the state average.
Grant funding isn’t what it used to be, either. Federal and state priorities have shifted, making these funds less available. But yes, the city expects to receive some grant assistance.
“They should do fundraisers and raffles instead.”
I appreciate the creative thinking, but this isn’t realistic for a $47 million project. Utility boards only have one big funding source by design — selling water. For something this large, there’s no feasible alternative to rate adjustments.
While our community excels at fundraisers for youth sports and volunteer organizations, infrastructure on this scale simply requires a different approach.
I understand rate increases are never welcome news, especially significant ones. But I hope this clarifies some of the confusion and explains the reality of how utility funding works in West Virginia.
My Buckhannon is part of My Town WV, LLC, a small business based right here in Upshur County. It has no affiliation with the City of Buckhannon or any other governmental agency.
