Published: August 07, 2008 11:18 am      

New Albany City council could vote on sewer increase next month

SO YOU KNOW The proposed sewer rate increase options would mean a jump for the average customer of between $3.57 and $7.70 a month, based on 700 cubic feet of usage.

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New Albany City Council members aren’t waiting for the smoke to blow over from a recent controversial vote before moving onto the next big topic.

On the heels of approving a public smoking ban ordinance on first reading, the council could soon make a decision on a proposed sewer-rate increase. The Sewer Board approved five options in June for the council to mull over, each involving an increase in rates for users. The additional revenue would go toward funding federally required improvements to the city’s sewer infrastructure.

Ron Carroll, president of the sewer board, said that vote probably will be taken during the last council meeting of September, or the first gathering in October.

“What option they are going to take, I have no idea,” Carroll said.

An ordinance ratifying a raise would require three separate votes by the council, and the increase would go into effect 90 days after passage. Carroll said he’s just a financial adviser giving options, and that he is sure the council will make a good decision based on the information provided to them.

At the heart of the issue is Economic Development Income Tax, or EDIT, funds. Those funds are subsidizing the sewer utility, which lowers the rate for users, but takes away money that could be used for development projects.

Councilman John Gonder said there’s a lot of discussion that needs to take place before he will be comfortable with a vote, but said he’d like to see EDIT funds used for their true purpose.

“Philosophically, it seems sewers ought to run on sewer fees — it shouldn’t run on EDIT money,” Gonder said.

The councilman believes using EDIT money for sewers should never have happened in the first place, but understands there is an opposing argument as to why it should remain.

Councilman Steve Price relates to the proposed sewer hike the same way he does other rate boosts.

“My feeling on any kind of increase is that every avenue has to be exhausted before we come to the people for a rate increase,” he said. “People are just taxed to death — it would have to be a last resort for me.”

The amount of the increase ranges from 13 percent up to 25 percent, depending on the option. The lower the hike, the more EDIT money would be used to take care of sewers.

A 25 percent increase would remove the EDIT pledge, allow for a land purchase for an additional wastewater treatment plant and require a bond issue of more than $9 million.

The freed EDIT money could possibly be used for fixing streets if the latter increase is passed, but Mayor Doug England has said the hike is based on sewers, not roads.

Gonder sees another source for saving money by ending the privatization of sewer and stormwater professional services, a contract held with the city by Environmental Management Corp.

“If you can get the money from EMC back in the sewer budget, maybe then you can go ahead and return those EDIT funds,” Gonder said.

Gonder proposes returning those services to the city.