By Emma Bouthillette 

Staff Writer

A 10 percent decline in billing in June and a 4 percent revenue shortfall this year will likely force the Kennebunk Kennebunkport and Wells Water District to raise customers’ rates next spring.

“It’s a tough year,” said Superintendent Norm Labbe. “It’s like the perfect storm.” 

First, he said, excess rain during June and into July reduced water demand because people did not need to water their lawns and gardens as they normally do. Second, new rates reward customers with a lower cost per gallon if they use less water, Labbe said. Finally, the district lost some large industrial users with the economic decline, including Spencer Press of Wells, he said. 

Labbe said he does not anticipate the district will meet its $5.6 million revenue budget this year, which was not increased from last year. He said district employees are doing more work and some capital improvements have been put on hold in an effort to cut costs. 

“We’ve lopped off half a million dollars off the budget,” through eliminating contract work, decreasing staff by two full-time employees and completing labor intensive projects with “in-house” staff, he said.

 “Ten percent down on revenue is a huge hit,” Labbe said. “Utilities feel somewhat insulated, but it’s not different than any other business. It’s a non-profit utility company and we fund part of capital improvements with revenue.”

As a result, Labbe said the district will file for a rate increase of more than 10 percent for 2010. He said the last rate increase in the district was in 2007, and since 1983 rates for 1,200 cubic feet have “risen only 10.8 percent.” 

“Selling water is our only source of income,” Labbe said. 

And while revenues may be down because of all the rain, Labbe said the flow in Branch Brook has increased.

Earlier this year the district abandoned a proposal to sell water from the aquifier to the Poland Spring subsidiary of Nestle Water.

In a June 1 press release explaining the board of trustee’s May 27 decision to no longer consider such sales, then-President of the Board of Trustees Richard Littlefield said, “It appears that a number of people are not prepared to embrace the concept of selling a fraction of our excess water to a user from outside our service area.”

That announcement followed the board’s decision one year ago to indefinitely table a proposal to allow Poland Spring to pump nearly 300 gallons per minute, or 432,000 gallons per day, from the site.

During heavy rain July 2, Labbe said the water plant almost flooded with nearly 150 million gallons flowing by the plant in one day – 347 times more water than the 432,000 gallons Poland Spring proposed to extract. 

“That’s a huge amount of water,” Labbe said.

Typically, Labbe said the flow is about 10 million gallons a day during peak summer months. 

Current Board of Trustees President James Burrow said the decrease in revenue is a regional and nationwide issue. He said the district staff has also eliminated overtime. 

“Most of our outlook is based on the weather,” Burrows said. “Mostly our revenue is down based on the wet spring and wet summer.” 

Staff writer Emma Bouthillette can be reached at 282-4337 ext. 237.