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The recently announced plan to increase sewer rates might not be the only new charge City Utilities customers will be asked to pay this year.
Mayor Tom Henry’s administration is finalizing a proposal to charge city water customers a monthly fee to cover the cost of fire hydrant maintenance, according to several members of the City Council. The proposed fee would cost the typical homeowner $2.03 a month.
The city historically has paid hydrant costs from property tax revenues, but Councilman Mitch Harper, R-4th, questioned the practice last year.
Harper represents the Aboite Township area, which mostly relies on Aqua Indiana for water and sewer services.
Those customers, including Harper, pay a fee to Aqua Indiana for hydrant costs and also pay city property taxes for the costs, meaning they are billed twice. “As a matter of fairness, people should pay once for fire hydrants,” he said.
The city listed $2.8 million for hydrant costs in the 2009 budget and is expected to need $2.9 million next year.
Councilwoman Karen Goldner, D-2nd, said it’s not right for people to pay twice for a service, but she needs to examine details of the administration’s proposal. She is glad the issue is being discussed, but she also is concerned that the fee would hit poorer homes hardest.
According to documents given council members in private meetings, the monthly price would be based on the water-meter size for each customer. This ranges from $2.03 for residential customers to $519.63 a month for a 10-inch meter, which is the size of one of the meters at Indiana University-Purdue University Fort Wayne.
Council members were unsure whether the new fee would be an increase in water rates or a separate fee placed on utility bills.
Administration officials downplayed the additional fee as exploratory. Frank Suarez, City Utilities spokesman, said the city is studying the issue at the request of the council.
“We don’t have anything final,” he said.
But Councilwoman Liz Brown, R-at large, said she thinks the proposal is fairly complete, although she was given no schedule for when it would be unveiled. Brown said she was told the fees are a common way for cities to cover costs. A list provided by the city showed a range of fees, from $1.12 in Bloomington to $3.31 in Mishawaka.
While Brown said she understands the problems of charging certain residents twice for a service, she questioned whether now is the best time to add a new fee.
This week, Henry unveiled a proposal to increase sewer rates by 86 percent through 2013 to finance $240 million in federally mandated improvements.
The Allen County Council also plans to discuss a plan to double the wheel tax and other surtaxes to help finance bridge and street maintenance in the city and county.
All these increases add up for residents, Brown said.
Also problematic if a hydrant fee is adopted is that the city wouldn’t cut property tax revenues by $2.9 million, that money would be spent elsewhere, Brown said.
Harper said he is concerned the city seems to have settled on a fee without discussing options with the council. If the fee is approved, Harper said the council should question how the extra property tax money would be spent and whether part of it could be returned to taxpayers.
