Date: February 8, 2011
To: Water and Sewer Utility Board Members
Re: Equalization of Water and Sewer Rates
I would like to propose to my fellow board members that we begin the discussion of rate equalization for water and sewer ratepayers countywide.
Currently, as you are aware, we charge as much as 30 -38% more for our service to those customers who live outside the city limits of Evansville. This practice has been policy long before the current administration and this current board came into office.
Recently, the City of Evansville/Vanderburgh County Plan of Reorganization dated 1/11/2011 proposed equalization of rates in the event of a government merger. Also, officeholders Joe Keifer – County Council (R) and Bill Jeffers – County Surveyor (D) have recommended equalization as well.
Arguments in past years to affirm current policy have stated that service to outlying areas of the county cost the utility more, although I am not aware of any existing proof or study to prove this position.
In reality, the water and sewer lines outside the city limits are (A) much newer and cost less money to maintain, and (B) the majority of this infrastructure was paid for by private developers and homeowners.
Another argument used to support our current rate structure has been that city residents, through their property taxes, pay for both county government and city government; and that taxpayers outside the city only pay for county government yet benefit from the amenities of the city without contributing to its welfare. There have been plenty of examples in the last twenty years where all county taxpayers have contributed tax monies for the benefit of both city residents and those outside the city limits. Also, residents outside the city, as well as city residents, currently pay for the reconstruction of our infrastructure in the oldest areas of the city, which is a substantial expense to all ratepayers. Property taxes have nothing to do with the rates our customers pay. Our utility is rarely supported by anything other than the rates we charge our customers.
Why bring this issue forth now? Through the leadership of Mayor Weinzapfel and this board, we have taken over management again of this utility and are setting the stage for a much more financially healthy utility. We have already noticed a vast improvement in our cash reserves brought about by self-management.
I would like to encourage this board to commission a study by our current accounting service to review optional rate structures that would be equal, fair, phased-in and revenue neutral. We do not need to wait for a possible merger to do what is right and fair.
Respectfully submitted,
Jeff Hatfield
Board Member
While residing within the City, I must concede to the undeniable truth of
Mr Hatfield’s contentions.
What’s right is right. Equalize the rates. …
Damn straight.
The city needs $500 million for combo sewer improvements over 20 years and the country residents are expected to pay a 38% premium?
Bottom line is neither the water & sewer utility nor the city council can mathmatically justify the rate differential. They’ve been asked to, and have failed to provide actual justification.
All the board and the council can offer is references to past practice based on a plethora of made up excuses, none of which prove it costs more to transport sewage from my residence outside the city than it costs to transport sewage from another residence inside the city that happens to be equal distant from the appliable treatment plant. Fact is, there are many residences inside the city that are at a greater distance from a sewer treatment facility than other residences outside the city.
So, kudos to Jeff Hatfield for doing the right and responsible thing here. Thanks, Jeff.
That’s plain written, clear and logical. Well done, Jeff.
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