Audit: ATL water bill hikes may be too high

Atlanta’s last round of rate hikes to pay for the city’s $4 billion sewer and water overhaul might have been higher than necessary, according to an audit released late Thursday.

The same report found that the city relies heavily on estimated water bills even though it’s nearly finished with a $35 million program to install meters that can be read electronically rather than manually.

Those are among more than 70 findings from the $500,000 audit requested in April 2008 by the City Council as members debated a four-year series of rate hikes. It gives the council its first outside look at the costly program since Franklin took office in 2002.

“It’s a great step forward for us to get this information,” Councilwoman Mary Norwood said . “It’s important for the council to exercise everything we can to provide oversight.”

Mayor Shirley Franklin pledged Thursday to investigate all the recommendations but stopped short of saying she would implement them.

“We will be open to all of them as suggestions,” Franklin said.

The rates approved in 2008 increased bills by 27.5 percent the first year, 12.5 percent the second, 12.5 percent the third and 12 percent the fourth. Franklin said Atlanta’s rates already are higher than other major cities.

Auditors suggested the later hikes might be reduced by as much as 2 percent to 4 percent.

The Department of Watershed Management strongly disagreed with the finding that its rate increases could be scaled back. Officials noted they had recently re-evaluated rates because of the recession.

The report will be the focus of a detailed work session Wednesday.

Auditors found the department continues to estimate bills rather than read meters for 10 percent of its accounts. They noted that thousands of meters also create inaccurate numbers and that, possibly because of such issues, the city has more than $12.5 million in disputed bills outstanding.