The Peru Gazette

By John T. Ryan

Peru Gazette readers have known for several weeks that the Peru Town Council has voted to go ahead with a $3.2 million water-sewer system capital improvement project for the Peru water-sewer district. Town Supervisor Peter Glushko told the Gazette today that the town’s financial advisors have recommended that the project be financed by issuance of a thirty-year bond. Water system users will have an annual tax increase approximately $1.30 per thousand dollars of taxable value annually over 30 years, while sewer users will pay an additional $.11 per thousand dollars of taxable value annually over 30 years. These charges will be in addition to the current water tax rate of $1.71 per thousand and sewer rate of $.16 per thousand. A person owning a $100,000 home or business, who utilizes both the town’s water and sewer system, will pay additional water-sewer taxes of approximately $141.00.

Assuming other major capital improvements are not necessary, tax rates should decline as previously issued bonds are retired. For example, an $850,000 water system bond is should be retired in 2014. Taxes finance water-sewer system capital improvements while metered use charges pay for ongoing operating costs.