Charlotte-Mecklenburg water and sewer customers: Your rates will go up because you conserved.

[GaryC 7]

15% hike in water rate approved

Lassiter: 'We're in a box'

JULIA OLIVER

joliver@charlotteobserver.com

It's official, Charlotte-Mecklenburg water and sewer customers: Your rates will go up because you conserved.

Charlotte City Council approved an unusually steep water and sewer rate hike Monday -- double the normal annual increase -- to make up for lower water sales in recent months, as the region has stopped lawn watering.

The vote was 7-3, and several council members in support of the motion complained that they had little choice. They said the utility department should have warned them earlier of a revenue crisis brought on by the area's record drought.

"We're in a box, and it distresses me," said Republican councilman John Lassiter. "I feel like there should have been a lot more disclosure to this council prior to 30 days ago."

Republican Warren Cooksey joined Lassiter in supporting the increase, which was first proposed in March. Democrats Susan Burgess, Anthony Foxx, Michael Barnes, Nancy Carter and James Mitchell also voted for it.

Republicans Andy Dulin and Edwin Peacock and Democrat Warren Turner voted against the rate increase. Democrat Patsy Kinsey was absent.

The rate change is scheduled to happen in two stages: a 15 percent increase beginning May 1 to make up for this fiscal year's shortfall, followed by a slight drop July 1 for the coming fiscal year.

The average user's monthly bill -- for about 6,000 gallons, according to department calculations -- will go from the current $40 to $45.96, through the end of June. It will then decrease to $45.60 until June 2009. Officials believe water restrictions will be further relaxed in February, increasing revenues.

Though that month-to-month increase may sound manageable, the overall effect is striking: It equals more than a 7 percent city property tax hike on a $200,000 home.

Charlotte-Mecklenburg Utilities, which serves about 250,000 customers across the county, requested the higher rates to fend off an expected $50 million shortfall through the end of fiscal 2009. Since lawn irrigation was banned in September, the department has seen revenues drop far below normal, officials said. Another factor has been the building slowdown, which has reduced new connection fees.

Utility Director Doug Bean's initial request to the City Council was for a 16 percent increase in rates. Bean said that without the rate hike, the department's bond rating could suffer, which would cost millions of dollars in interest.

The council delayed a vote on the issue March 24, asking for cost-cutting possibilities and more information.

Then last week, Charlotte began allowing once-a-week lawn watering, and Bean reduced his request. The limited irrigation is expected to bring in about $6 million through the end of the next fiscal year, Bean said.

Council members' discussion of water rates and conservation measures Monday lasted nearly two hours. Several members asked pointed questions of Bean, including Mayor Pat McCrory, who suggested car-washing should be allowed under the revised water restrictions.

Bean said he and other experts didn't think such a revision would send the right signal about conservation.

"So it was a public relations logic, not a logic based on science," McCrory shot back.

Peacock questioned the utility's argument that the increase was needed to preserve a top bond rating. He said the agencies setting the rating should be more forgiving in light of a record, "act of god" drought.

"We haven't done anything wrong. We've done everything right," Peacock said. "Do we not have the mercy to go to the rating agencies and explain to them that we are not doing anything to rock the apple cart?"

Finance Director Greg Gaskins said that would have no impact.

On the other hand, Burgess recounted opening her water bill to discover that the amount of water she used had gone down.

"It is possible to have a decrease," she said. "If we're all conscientious, it doesn't have to be terrible news."

Lassiter said the council should take a closer look at the overall utility budget in coming weeks. With rates going up on the heels of customer conservation, he said: "Everybody's a little sensitive. And we need to step back and look at, what is the way we are operating?"

The council voted unanimously to examine certain aspects of the utility -- including the way it decides what to build and how to pay for capital projects -- during ongoing city budget discussions.

http://www.charlotte.com/breaking_news/story/571180.html

[natty bumppo 297]

sh_t happens ....

[Nagishkaw 510]

Gary, you didnt have to send us a *link* ....someone in the area may need it to keep their rates down.

Edited April 10, 2008 by Nagishkaw

[pedroh 21]

LOL for the people who live in that county haha..

i live in the county next door.. phew

[Ban Hammer 13,340]

can't win for losing it seems

[Don_Joy's Prince 0]

If you use too much they charge you up the A$$. Conserve and then they don't get enough of your money so they raise the rates to charge you up the A$$!