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Thursday, September 2, 2010

Water and Sewer Rates


 

This response represents my views only.

 

When I took office in December of 1998, I soon became appalled at the financial status of the county's water and sewer enterprise fund.  The fund was operating at a $1 million loss every year and no one seemed to care.  We were charging less for water and sewer than what it cost to provide the service.  We were not putting any money aside for the eventual repair, renovation and replacement of our water and sewer systems.  We were allowing developers to connect to the system for less than what it cost to make new connections available.  Through a Rube Goldberg-like scheme known as "tap credits," a lot of developers got back a substantial amount of what little they did pay for new connections.  Prior boards of county commissioners were content to ignore the situation.

 

We instituted a comprehensive review of our water and sewer enterprise fund.  We had numerous televised public worksessions on the issue.  We also had not one but two advertised and televised public hearings.  The issue also received front-page coverage in the local newspapers.

 

At the conclusion of our review and after considering public input, we implemented the following measures:

 

  1. We now charge developers $6,000, rather than $2,200 to connect a new house or its commercial equivalent to the sewer system;

 

  1. We now charge developers $4,300, rather than $2,200 to connect a new house or its commercial equivalent to the water system;

 

  1. We eliminated the practice of giving developers "tap credits"; and

 

  1. We increased the rates for existing customers in order to raise enough revenue to:

 

·         cover the cost of providing the service; and

·         begin setting aside funds for the eventual repair, replacement and renovation of the water and sewer system.

 

I fully supported and voted for the first three (3) measures.  While I also supported the increases in fees for existing customers, I did not vote for them.  I wanted to place an accounting "Chinese Wall" around revenues generated from existing customers in order to prevent those revenues from being used to finance the enlargement, expansion, or extension of the system for developers.  A majority of the county commissioners favor the use of public funds and public debt to build water and sewer projects for developers.

 

The only thing worse than a public utility that charges too much for its services is one that charges too little.  We have a duty to set rates at levels sufficient to maintain the system over the long term.  To do otherwise simply postpones the day of reckoning to future generations.

 

Lennie Thompson

 

 

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