Troy Council rejects water, sewer rate plan

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By Nancy Bowman, Contributing Writer 2:31 PM Tuesday, November 3, 2009

TROY – City Council surprised administrators by rejecting a 10-year plan for water and sewer rate increases following weeks of discussion.

What the city’s next step will be remains to be determined, an unhappy Patrick Titterington, Troy service and safety director, said following the vote Monday, Nov. 2.

He said he didn’t immediately anticipate a revised rate increase proposal.

“I am not sure where we have to go,” Titterington said. “We will have to look at priorities in the water and sewer funds to keep the systems going.”

The rate increases would have been the first in four years.

Titterington and Richard Cultice, city auditor, said increases were needed to keep fund balances at levels required by bond rating companies and to pay for upcoming projects to meet state and federal regulations. If the bond rating company is not satisfied with the fund balances, the city’s bond rating can be lowered, resulting in higher costs when money is borrowed.

The staff recommended a 10-year plan, beginning in 2010, with a 7 percent sewer rate increase annually the first eight years followed by 2 percent increases in years nine and 10.

For the water rate, increases of 10 percent were proposed the first two years, followed by 8 percent in years three and four, 6 percent in years five and six, 4 percent in years seven and eight and 2 percent in years nine and 10.

Under the proposal, the minimum bill would not change. Of the 11,500 utility accounts, around 2,800 would qualify for the minimum bill.

Council had discussed the rate proposal with administrators in September then held readings at its next four meetings culminating in Monday’s 4-3 vote defeating the proposal.

Voting against the rate plan were Jarrod Harrah, Frank Hutchinson, Tom Kendall and Tom Kirkham. Mark Douglas, Alan Clark and John Schweser cast the “yes” votes.

Some council members who voted against the proposal said they realize rate increases are needed. However, they didn’t like the size of the increases, particularly in the 10-year plan’s initial years, nor did they like a plan outlining increases over a decade.

Before the vote Monday, four residents asked council to hold the line on rate increases. Public comments against the rates had been heard at previous meetings.

Resident Mike Fox said increases the size proposed would be “catastrophic” to those on fixed incomes.

After the meeting, Councilman Kirkham said he had a number of people approach him, asking that council avoid an increase during tight economic times.

Contact this reporter at nancykburr@aol.com or (937) 339-4371.

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