City wants to raise water, sewer rates
Second round of public hearings scheduled for next week’s City Council meet
By THOMAS MICHALSKI
Article published on Thursday, Sept. 18, 2008
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| Jimmie Walker, right, director of utility billing, argued for the increase with Sonny Kotaoa, assistant finance director. |
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PINELLAS PARK – The City Council is expected to approve a 9 percent increase in local sewer and water rates next week after absorbing its own surges in operating expenses for the past three years.
The increase will pay for wholesale water purchased from Pinellas County and for long-term debt obligations.
Ron Miller, city finance director, said the 9 percent increase covers a 3 percent surge for county water purchases and another 3 percent that is expected to become effective next month.
Sonny Kotaoa, assistant finance director, said the rest of the money will be used to cover long term debt obligations and to maintain the city’s AAA credit rating.
Jimmie Walker, director of utility billing, said Pinellas Park customers pay the lowest fees in Pinellas County for water and sewer services at $42.16 per 3,000 gallons. The rate is slightly higher, however, for 5,000 gallons at $68.93.
The total for rates including reclaimed water, garbage and recycling is $62.02 and $88.79, respectively.
The monthly rates of other Pinellas County municipalities for water, garbage and recycling for 3,000 and 5,000 gallons are: Clearwater, $86.60 and $111.25; St. Petersburg, $85.18 and $98.95; Largo, $80.29 and $93.68; Tarpon Springs, $78.08 and $88.27; Treasure Island, $75.19 and $95.35 and Madeira Beach, $70.98 and $87.43.
He said the city, although itself will pay higher rates for water purchased from the county, in recent years has not passed those increases on to customers. But, he said, it has come to a point that the increases are too high to absorb and debts must be paid to maintain the city’s credit rating.
Joseph Thielbar, a local resident, argued against the increase. He said residents have experienced increases in all aspects of life, from gasoline to groceries.
“The effects of the economic downturn has hit the community hard,” Thielbar said. “Businesses are closing, real estate values are plummeting.”
Thielbar said “now is not the time to increase utility rates. Now is the time to do whatever we can to get as much money as possible into the pockets of our citizens.
“Pinellas Park doesn’t have much to brag about,” he said. “We have high crime rates and our property values are falling faster than average. There isn’t much to entice someone to want to move here.”
Thielbar said the county should take over the responsibility of providing city residents and businesses with water and allied services.
“Allowing the county to take over would be the correct response,” he said. “Utility customers would never know the difference. It would be the same water we are using today.”
Randy Heine, a local activist, suggested that the city pay more money against the loans to reduce interest debt.
Mayor Bill Mischler said city employees provide better service than a county-run operation would. He said money is used to replace aging pipes and other equipment that would still be required even if the county operated the system.
A second public hearing on the rate increase will be held on Sept. 25. Any increase would become effective on Oct. 1.
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Article published on Thursday, Sept. 18, 2008
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