Atlanta water department deficit not as big as feared

Officials of the Atlanta Watershed Management Department now say the department’s financial hole won’t be nearly as deep as they previously thought.

Commissioner Rob Hunter announced Wednesday he now anticipates a $30.5 million budget shortfall when the department closes its financial books on June 30 — $19.5 million less than the department’s earlier $50 million shortfall projection. In December, Hunter laid off 97 employees in anticipation of the worsening financial condition.

The commissioner said he plans to restore some projects that were delayed and hire some workers, possibly in customer service.

Hunter based the new projections on three factors: people are using more water than the department initially anticipated, variable bond rate payments are not as high as they previously thought and sales tax revenues are doing better than the department’s expectations.

“Our position has improved,” Hunter told reporters.

Some were skeptical about the new numbers.

“I think [Hunter] and his department runs the risk of being incorrect and they’ve been incorrect a lot lately,” said Fulton County Taxpayers Foundation executive director Barbara Payne, referring to huge increases in some recent homeowner water bills.

Hunter said earlier this month that part of the problem was a software glitch in about 450 water meters.

Payne added: “You are still in a budget shortfall. You are leaking a lot of water.”

Chip Warren, a national representative for one of the city unions, had mixed thoughts about the revised projections. Warren, who serves on the Professional Association of City Employees, said he hopes the department will rehire some of the workers laid off. However, he was surprised by the size of the new projections.

“It is quite a discrepancy,” said Warren, a retired Atlanta police officer. “I don’t know how you can be that far off.”

Hunter credited his staff for spending conservatively. The department’s budget is about $500 million.

Watershed Management is an enterprise fund, which means it operates separately from most city departments. The city is currently looking at ways to fill a projected $20 million shortfall for the general fund, which covers most services, such as police, the fire department and parks maintenance.