Sewer fees could
climb 23%

The anticipated hike would
cover $175M in new revenue
bonds for overhead and debt

Mayor Jeremy Harris' administration is eyeing a sewer fee hike of up to 23 percent for the next fiscal year to pay for construction debt and increased operating expenses.

Flush funds The city is considering raising sewer fees by 23 percent. Here is a look at the $34.30 monthly charge now paid by a typical single-family unit: $24.85 (base charge) $9.45 ($1.05 per-gallon rate multiplied by 9,000 applicable gallons of water consumption) Source: City Department of Environmental Services

"We indicated that there would be a need to increase rates," Environmental Services Deputy Director Tim Houghton told the City Council's Budget Committee.

The discussion on sewer fees came during a request by the city administration to issue up to $175 million in sewer revenue bonds to help fund construction projects and previous debt.

A sewer fee increase would help to pay the cost of the newly acquired bond debt.

The administration presented information that revenue from sewer fees would rise to $139.2 million for next fiscal year from $113 million for the current fiscal year, or a 23 percent increase.

"We're still working on that number because we're still looking a little bit at our budget," Houghton told the committee.

Houghton said that once the bond issuance is approved by the Council, the administration would then move to propose an increase in sewer fees, which would pay for debt service and operating costs that include collective-bargaining pay raises.

But Budget Chairwoman Ann Kobayashi said Council members need to know the information now, "especially if they want to float more bonds, which means we will have more debt."

She added, "We want to know the whole picture, and I'm sure the next mayor wants to know what he is inheriting."

Kobayashi noted the administration has been planning to increase sewer fees for the last five years but has not done so.

"Why do we need it when we didn't need this all these years?" Kobayashi said.

Kobayashi said it would have been better if the increase came in smaller increments over the years instead all at once because it will hit ratepayers hard.

She also continued to voice her displeasure with the administration's past practice of "raiding" the sewer fund to help balance the budget.

The administration has called the practice a reimbursement of the general fund.

A typical single-family monthly sewer bill is $34.30. Sewer rates have not been raised since 1993.

Kobayashi's committee deferred taking action on the bond issuance until she receives more information about the administration's sewer fee hike plans.

Houghton said a short delay in approving the issuance should not be a problem in completing sewer projects, but if the bond float fails to get approved, it could mean that the projects -- some even mandated by the federal government -- could come to a halt.

Some committee members were worried about that.

"I don't want to see us jeopardizing and putting ourselves in jeopardy with (Environmental Protection Agency) or anything else," Councilwoman Barbara Marshall said.