On May 1, 2015, Fairpoint Regional Utility System, our wholesale supplier of water, raised the price of water to its members including Holley Navarre Water System by 25%. The rate increase was required to pay for the repair of the line under East Bay, construct a new water supply well and construct a new ground storage tank and booster pump station. These projects allow the system to keep up with growing demand.
Holley Navarre Water System strives to maintain reasonable rates for service, however, it is likely that rates will be required to be raised to pay for this cost increase, to pay for improvements that will be required in our own system in the near future and to pay for benefits mandated by the Affordable Care Act that will be forced upon us in 2016. We are currently in the process of completing an updated Master Plan for the system and will be evaluating the required rate increase. It is anticipated that rates will be increased appropriately near the end of 2015.