Sewer rate hike considered
By WARREN SCOTT, Staff writerFOLLANSBEE - City officials on Monday agreed an increase in the city's sewer rate seems inevitable but disagreed on the amount of the rate hike.
City Manager John DeStefano told council the city's sewer board has recommended the rate be raised from $6.25 per 1,000 gallons to $8.30 per 1,000 gallons, citing an independent evaluation that found the wastewater treatment system didn't generate sufficient revenue to meet its costs and pressure from the West Virginia Water Development Authority to pay on bonds issued for upgrades to the sewer plant 10 years ago.
Council is expected to consider the rate increase at its next meeting set for 7 p.m. Oct. 20. Council normally meets on the first and second Mondays of each month, but its second meeting was moved because of the Columbus Day holiday.
DeStefano noted public hearings must be held, and the state Public Service Commission must approve the increase before it may go into effect.
The state Water Development Authority has filed a complaint against the city with the public service commission, citing its failure to make payments on the bonds in a timely manner and recommending the city apply a $1 surcharge to its rate to meet the payments.
DeStefano said the city is behind one month in its payments, owing $39,600.
In the past the city has drawn money from its general fund to make the payments, but under state law, a wastewater treatment plant must be self-sufficient, generating enough revenue to meet the cost of its day-to-day operation and establish a reserve fund for the repair and replacement of equipment.
Mayor Tony Paesano said an increase is needed but suggested it be made in increments of 87 cents in each of the next three years. He said the proposed rate, an increase of 32 percent, would have a significant impact on many residents, particularly senior citizens and single parents.
"I know we need an increase, but I think we can phase it in and make it work," he said.
Second Ward and 4th Ward Council members Tom DiBattista and Iris Ferrell, respectively, also expressed concern about the ability of residents to pay the higher rate.
But DiBattista asked if the current rate, which is lower than that recommended by the state, has hurt the city's ability to get grants for the wastewater treatment system.
DeStefano said it has but the proposed rate increase won't meet the recommended level.
Third Ward Councilwoman Kathy Santoro said it's unfortunate the rate wasn't increased in smaller increments earlier, noting the rate hasn't been raised in 10 years.
An earlier city council approved the last increase, which was more than triple the previous amount, citing a need to raise the rate to meet current costs.
The move was opposed by some community members, who expressed their displeasure at a number of council meetings and public hearings.
(Scott can be contacted at wscott@heraldstaronline.com.)
