As hundreds of cyclists poured through the Summit City, there was hope that the event would not only bring some exercise and entertainment to the participants but hopefully a changed view of the community in general.NEW HAVEN – New Haven officials will decide in early May whether to act on a 37 percent water rate increase that is still in the beginning stages.
In December, the New Haven City Council delayed voting on the increase after the city’s financial consultant, Greg Guerrettaz of Financial Solutions, asked for more time to re-examine some of the data.
The city buys its water in bulk from Fort Wayne, and typical customers using 5,000 gallons a month now pay $20.75. With the increase, monthly bills would increase $7.68.
The city was waiting to hear whether Fort Wayne City Utilities would have an increase before finalizing rates for New Haven water customers, Mayor Terry McDonald said. Officials were expecting an increase of about 19 percent from Fort Wayne but learned recently there will be no increase, he said.
Guerrettaz outlined the options:
•Finalize and enact the ordinance – which has already passed a first and second reading – for the 37 percent water rate increase. The expected increase from Fort Wayne was built into the 37 percent calculation, and the increase could be adjusted down as low as 25 percent, although Guerrettaz advised against it.
•Repeal the increase altogether.
•Draft a new ordinance for a 68 percent water rate increase, which was discussed earlier last year.
•Continue to do nothing.
Guerrettaz said the margins are too thin, which accounted for a lower credit rating for the water utility, and he did not recommend reducing the increase.
“We have not kept up with the rates as we should have, and the water utility is eroding and needs help,” he said.
The last water rate increase was in 2001, McDonald said.
This would be the first phase of the water improvement project in two years. The second phase could require another water rate increase, McDonald said.
The increase would help finance maintenance and replacement of the city’s aging infrastructure. Many of the city’s pipes are 40 to 60 years old and difficult to maintain, according to Keith Schlegel, the city’s director of engineering.
A proposed five-year improvement plan for the water utility could cost an estimated $6.2 million. To date, the council has opted to borrow enough to pay for the first two years of projects, or $3.9 million.
