Bills contain retroactive hike
Monday, December 22, 2008
By KEN ROSS
kross@repub.com
HOLYOKE - City sewer users might be surprised to find their latest bill includes a retroactive rate increase, something that upset one city councilor.
"The public should only have to pay on the old rate," said Councilor Kevin A. Jourdain Wednesday, referring to latest sewer use bill. "We didn't pass that rate (increase) until two weeks ago."
But, Public Works Superintendent William D. Fuqua said the department needed to raise rates as soon as possible to avoid a possible budget shortfall.
"We're concerned we are running a deficit," Fuqua said Thursday. "Further delaying (the rate increase) would have increased that risk."
On Dec. 2, the council voted 8-6 in favor of raising the sewer rates by 74 cents, or 15.8 percent, from $4.66 per 1,000 gallons to $5.40 per 1,000 gallons. The latest sewer bill mailed to residents is for use between Aug. 7 and Nov. 6, Jourdain said.
Fuqua said his department does not normally retroactively raise rates. "It's not been the practice," he said, "but there's nothing that says it can't be for retroactive use."
The retroactive increase was needed, in part, Fuqua added, because the council "took so long to set the rate." Fuqua first requested a rate increase in August. On Sept. 2, the council voted 7-6 in favor of an identical increase. But, because the motion requires a two-thirds majority vote, the increase was not approved.
Fuqua said his office had not received any complaints about the latest sewer use bill as of Thursday.
Control over who sets the city's sewer use rate has been an issue for several months. Normally, the Board of Public Works recommends a rate increase, which is then voted on by the City Council.
All that changed on Dec. 2, when the council voted 13 - 1 in favor of an ordinance which gives the council the power to adjust sewer rates instead of solely accepting or rejecting the Board of Public Works' recommendation.
"If we don't have the power to dispute the rate, what is the point of approving it," asked Councilor Rebecca Lisi at the Dec. 2 meeting.
"This way, we will have more control over the department and it will lead to more accountability and more transparency," Jourdain said at the Dec. 2 meeting.
The rate increase was needed mainly to help pay off $6 million of debt for the sewage treatment plant, and $3 million for a combined sewer overflow abatement project on Mosher Street, Fuqua has said.
©2008 The Republican
Update: Councilor Jourdain has reviewed the ordinance language with the City Clerk who agreed that the ordinance change specifically says the new rate does not take effect until adopted. It was the full intention of the City Council that this rate did not take effect until date of adoption as written in ordinance. The leadership of the DPW is attempting to twist the long held interpretation of the ordinance to your detriment.
Councilor Jourdain also has referred the matter to the Law Department for their review and legal opinion. No department of the city has ever issued retroactive rate increases and this matter is being followed very closely on your behalf as ratepayers. Now that the Council controls rate setting authority - additional remedy measures are available to the Council if this outrageous decision is allowed to stand. Updates to follow here at Holyoke First!
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