Will Water Rates Stay the Same?
Although the two fee proposals currently before the City Council do not address water
rates, it is virtually certain that water rates will also need to be increased over the
next several years. According to the Board’s consulting engineers (Black &
Veatch), rate increases of 12 percent in 1999, nine percent in 2000, nine percent in 2001,
and nine percent in 2002 will be required to meet forecast revenue requirements of the
Water Department.
If water rates are not raised, the Board will not have the legally required coverage
limits for bonds that have already been issued. If the Board and City Council fail to
increase water rates, the Board of Liquidation, City Debt, may compel the Board and
Council to raise water rates in order to prevent a bond default.
It should be noted that a water rate increase of 12 percent was previously approved by
the Board and the City Council in 1989, but that increase has not been implemented as of
this time. According to the Board’s consulting engineers, it will be necessary not
only to implement the previously improved 12 percent rate increase in 1999, but an
additional 27 percent water rate increase over the next three years will be required. The
39 percent water rate increase has not been publicized by the Board in public discussions
or literature regarding the review of the sewerage and drainage fee proposals. |
