Thursday, January 28, 2010

Financial analysis agency sez: "New Albany City Council should raise sewer rates 70 percent."

Today's breaking story, as revealed by the reporter on Twitter:

Report: New Albany City Council should raise sewer rates 70 percent, by Daniel Suddeath (News and Tribune).

The New Albany City Council must raise sewer rates by 70 percent immediately or risk breaching bond term agreements, a representative with the financial analysis agency Crowe Horwath said Thursday. Hired last year by the Sewer Board to study the utility’s financial standing, John Skomp of Crowe Horwath reported to the body several benchmarks have failed to be accomplished concerning the approximately $55 million in outstanding sewer bonds.

4 comments:

jon faith said...

What no Holden Caufield? The dearth of eulogies onsite appears disproportionate.

G Coyle said...

Reading this Trib aritcle, it's almost like I get a sense, no one is running the town. “I just can’t help but think that there has to be some options other than just saying ‘we’re raising your rates 70 percent’,” Caesar said.

Conceptually, if not just legally, what don't people people get about Expenses=revenues at utilities?

Are any laws actually followed here?

Kathleen said...

Before another increase in New Albany Municipal Utilities, there first needs to be an adjustment in the current method of rate-to-usage billing. A household using zero units per month pays precisely the same fee as a household using two units per month. There is no incentive to conserve, and no reward for straining the City's system half as much and more than the typical customer.

If the proposed rate of $60/mo. is adopted, our monthly bill would be increased by 100%, not 70%, as we use on average only one unit each month due to our conservation efforts. It is long past high time that citizens be assessed fairly and directly for usage and not rewarded for their wasteful behaviors.

G Coyle said...

As one household constantly trying to conserve, it is appalling SAVING the sewer system more load is in no way incentivized. Mandate low-flow plumbing, oops, I forgot, ...