Negotiations continue between Fredonia and Pomfret officials on a new water and sewer contract, with Fredonia’s latest offer being Pomfret customers paying 15% more than Fredonia residents pay.

The previous contract was for 30 years. Pomfret is paying $8.16 per thousand gallons, but town officials want the new contract to be for $5.28 per thousand gallons.

When negotiations started Pomfret wanted $4.80 per thousand, which is what Fredonia residents pay. Fredonia counter-offered $6.77 per thousand, which is comparable to North County Water District rates.

Pomfret then offered to pay 5% more than the village rate, with Fredonia negotiators agreeing to 25% over the village rate at $6 per thousand. Pomfret didn’t want to accept the 25%, but upped its offer to 10% more than the village rate to $5.28 per thousand, with Fredonia still sitting at 25%.

All of the percentages would include sewer rates.

“I’d like to keep them as our customers” Fredonia Trustee Kara Christina said at a special meeting of the Fredonia Village Board. “I think that we should accept their offer. I fear that if we don’t, they’re going to leave and then we’re going to be in trouble.”

“All the other districts only represent 26% of revenues, what you’re going to find is that by accepting their terms of reduction down to 10% of what our annual usage is you’re going to lose about $90,000 a year and I don’t know how you’re going to make up $90,000 on just the water if we do this for all of the contracts,” Trustee James Lynden chimed in.

“It was never intended for this commodity to make a profit,” village Trustee EvaDawn Bashaw noted. “Ten percent above what we pay is a reasonable profit. What we pay is profit, so 10% above that is certainly a reasonable profit”

Lynden’s concern is that the reserve fund will suffer, which will cause a substantial increase in the rate that village residents pay.

“We know that we have inflated costs and that those funds have been used in an inflated purpose for both payment in the DPW and payment for administrative costs,” Bashaw added.

According to Bashaw, having Pomfret pay 10% more than the village rate still allows the district to survive. The village would break even with water and still show a $10,000 profit with sewer at the rates if the village decreases them now.

“The threat is to raise taxes if we give them this break. That’s not the case. What we need to do is find an accurate amount of money expenditures in the DPW and in administrative costs that reflect where the money is being spent,” Bashaw stated. “I think the funds can be rearranged and used accordingly to where the expenditures truly happen.”

The majority of the board agreed to offer Pomfret a rate of 15% more than village residents’ pay, with a term of five years.