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Fulton, Atlanta plan rate increases; others may follow
The Atlanta Journal-Constitution
Published on: 04/16/08
Even utility officials concede it seems unfair to penalize customers for conserving water during the lingering drought.
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Yet, Atlanta and Fulton County are asking to do just that. Both have proposed 15 percent rate increases to offset losses to conservation.
And others may well follow if usage stays low across metro Atlanta.
For water utilities the issues is simple: most have millions of dollars in outstanding bonds. A certain amount of revenue is needed to pay off those loans. And less water use means less money coming in.
Atlanta has hundreds of millions of bond debt for its Clean Water Atlanta program — a $4.2 billion overhaul of the city's sewer and water systems.
"The problem is you want people to conserve," said Janet Ward, spokeswoman for the Department of Watershed Management. "It's the right thing to do. But ... operating budgets don't change."
Fulton public works officials will make the same case in early May to the county commission, asking for a 15 percent rate increase to offset losses to conservation.
Angela Parker, public works director, said the request is being made reluctantly, recognizing how unfair it seems.
"If there was any way to avoid it, we would," Parker said. "But we have to meet the terms of our bonds."
So far, Atlanta city council members are blocking Mayor Shirley Franklin's request for a 15 percent conservation penalty. The fee increase would apply to anyone who uses more than about 2,250 gallons of water a month. That would affect most water users since 6,000 gallon is considered standard use.
The request, proposed in February, is languishing in the city council's utilities committee and not likely to move anytime soon.
"I've got it held," said Councilwoman Carla Smith, chairwoman of the utilities committee. "I'm struggling with it.
I don't want to have to pay an extra 15 percent just because I'm conserving. It seems unfair."
Atlanta utility officials know they aren't likely to get the rate increase through a council facing an estimated $65 million budget deficit, which likely will force service cuts and property tax hikes.
"We are preparing our [department's] budget for the next fiscal year on the assumption it will not pass," said Rob Hunter, Watershed director.
Atlanta officials plan in May to propose a series of water rate increases that will help pay for bond debt and regular operations of the huge utility. Ward said if the surcharge remains stymied, the watershed department will boost the upcoming rate increases to cover the lack of the conservation penalty.
Smith recognizes Atlanta must have the money to cover its bond debt no matter how unfair it seems to penalize folks who conserve.
"We don't really have an option to say no," Smith said.
Fulton commissioners will face the same choice next month.
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Comments
By Tuscaloosa
Apr 22, 2008 11:57 AM | Link to this
I am in Tuscaloosa, Alabama however this reeks of government inefficiency and special interest groups. Your city officials (like most public employees) have never worked in the real world. That is where only the efficient, innovative businesses using continuous improvement techniques survive. It is called a free market economy.
All of the US manufacturing base has learned to do more with less, or they go out of business. We have leaned out unnecessary office and floor staff, made capital improvements in equipment and contracted with efficient service sources.
The problem with government, is that they have this mindset of expansion and when things start to tighten up, they think that taxes are the answer while completely ignoring the afore mentioned continuous improvement and cost cutting techniques.
You folks in Georgia need to stand up to your local legislators and say NO to any rate increase period. If they do not listen, then fire them all at the next election cycle.
Yes your neighbors across the line are watching this very close.
By Confused
Apr 19, 2008 10:05 PM | Link to this
The Corp of Engineers makes a multi billion gallon error in water release, but that's okay.
The city of Atlanta allows its water and sewer delivery lines to have massive leaks, but that's okay.
Contractors to fix city problems don't have to be qualified or capable. They simply have to be minority owned, but that's okay.
Citizens are required to conserve water to fix the problem, and that's okay.
Citizens are requested to pay more sales tax to fix these problems, but that's okay.
These same citizens are now going to be penalized 15% for conserving, but that's okay.
The Corp doesn't pay for its errors, the city doesn't pay for its negligence, the contractors don't pay for doing shoddy work, but that's okay.
The citizens who didn't cause any of this does have to pay for it all, and that's okay.
This leads to one question: WHAT THE HELL MAKES ALL OF THIS OKAY???
By SugarHill Dawg
Apr 19, 2008 10:59 AM | Link to this
This makes me so mad and I don't even live in Fulton County!!!!!!!! Demand that they cut staff and overhead and rememmber what your last water bill was before the hike and keep on paying them that amount!!!!
By Petka9812
Apr 18, 2008 7:43 PM | Link to this
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ıııııııııı ıııııııı ıııııı ı ııı ııııı [url=http://www.ruzip.com/]ıııııııı ııııııı ıııııııııı ııııııııı[/url], ıı ıııı ıııııı ıı ıııııı... ;)
By D E Rogers
Apr 18, 2008 5:52 PM | Link to this
The Dept. Heads and the people that want to raise the Homeowner tax to offset the water they do not live in the city of Atlanta so the tax do not effect them.
I see them on the news going home to other counties.
By Lottie
Apr 18, 2008 12:14 PM | Link to this
Chemical, power, and other treatment costs should have been down with less water usage by consumers. In addition, business and government facilities typically waste more than residents. They should bear the brunt of Fulton's financing problems. Increasing rates for the under-6K consumers wreaks of special interests. Typical government waste and fraud in action.
Lawn watering should be banned unless the builders install recycled watering systems. Georgia woefully lacks foresight or equity when it comes to utilities and infrastructure. Jobs are important but if it's too expensive for workers to live in the area business won't come and stay even with give-aways.
By LD
Apr 18, 2008 9:36 AM | Link to this
Remember that the number of people required to operate a water system does not decrease just because a little less water was pushed through the pipes. So, the call to cut staff as result of conservation doesn't really make sense.
Having said that, there should be some room for increased efficiencies. It's quite probable that like other city departments there is plenty of room for reduced staff. But this doesn't directly relate to less water moving through the system. It has to do with bureaucracy and people being accustomed to (and accepting of) poor performance.
I think rates should be increased slightly, but only for customers whose use is significantly above average. This will pay the bonds while further encouraging conservation. A certain amount of use should be priced low so that poorer families who really conserve aren't penalized too much.
By Yes
Apr 18, 2008 9:30 AM | Link to this
It has been documented in many places that the Atlanta water dept loses about 18% of it's water through leaky pipes. 18%!!! Fix the pipes, keep usage the same, and the net result is water is "conserved" by 18% and revenues stay the same. Duh!
By Mark
Apr 17, 2008 5:33 PM | Link to this
Lets talk the bottom line, reduced water cunsumption by Ga cumsumers = reduced cost, reduced government employees, less cost to the ave.
Georgia citizen.
To spell it out for you, WAKE UP.
The Georgians proved they are more than willing to do their part!
unite Demand that their budget is reduced!
By Alex
Apr 17, 2008 3:08 PM | Link to this
YAY Carla Smith!! DOWN with Shirley Franklin!
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