Fort Wayne’s careful financial planning has put it in a position for growth and success, according to its chief executive.NEW HAVEN – City residents could see water rates increase 35 percent to pay for two years’ worth of water line improvements.
With a preliminary and informal vote, the New Haven City Council agreed to move ahead with the 35 percent increase, which was the middle-ground option presented two weeks ago.
The council must still formally approve the rate increase and conduct a public hearing.
An ordinance to raise the rates will now be drafted and could be introduced in July, though it will likely be later in the summer, Council Attorney Carl Miller said.
Under the proposed increase, a typical water customer using 4,000 gallons a month would pay $22.71 a month. Currently, that same customer pays $16.82.
Last meeting, the city’s financial adviser presented three options to pay for an estimated $6.2 million worth of water line projects stretched over five years. Two bonds will be needed to pay for all five years of work, officials said.
Potential rate increases ranged from 28 percent to 55 percent.
The smallest increase would pay only for projects set for completion this year. The largest increase would pay for two years’ worth of projects and allow the city to build up cash to help pay for the remaining three years of scheduled projects.
But the council’s preferred option will cover only projects planned in 2010 and 2011. The city will have to review rates again in two years to decide how to pay for the remaining work.
Councilman Ron Steinman, R-at large, advocated for the 55 percent increase. Saving for future maintenance means the city would have to borrow less money or be able to tackle more projects, he said.
Councilman Terry Werling, R-at large, said the economy could improve or take a turn for the worse in two years. A 35 percent increase will provide enough new revenue for now, he said.
Mayor Terry McDonald said the city should work to enact small rate increases periodically to avoid large bumps and help provide cash to pay for ongoing maintenance.
New Haven has not raised water rates since 2001.
