FORT WAYNE – The National Weather Service in northern Indiana says northeast Indiana and northwest Ohio are likely to see more record-breaking heat on Monday.FORT WAYNE – Fort Wayne City Utilities wants to spread its 40 percent water rate increase over three years to ease the burden on customers, but the biggest jump will remain in 2013.
Utility officials told the City Council on Tuesday it would be willing to ask for a three-year increase instead of two. The council appeared generally supportive of the effort – it asked for such an alternative last week – but delayed voting on the ordinance until next week.
Under the city's original proposal, residential users of 5,000 gallons a month would see their monthly water bills rise from $17.25 to $21.10 in 2013 and then to $24.16 in 2014. The new proposal would increase rates to $21.10 in 2013, $22.95 in 2014 and $24.10 in 2015.
Kumar Menon, utility director, said the decision to delay the full implementation of the rate increase came after utility officials met with numerous businesses and community members.
He said the vast majority of them understood the need to raise rates to help the utility meet maintenance requirements, but they asked whether it could be spread out over a longer time.
"Everyone is hurting right now," Menon said. "Stretching it out is the most reasonable thing we can do."
The delay in implementing the full rates would take the city's ability to replace water pipes from 10 miles a year to 9 miles a year, Menon said. Water main replacement has been given as one of the major reasons the city needs to increase rates. The city has had 54 water main breaks through the first 45 days of this year, Menon said Tuesday.
The biggest point of contention came when Menon asked the council to approve the new rate proposal this week.
Menon said the utility needs to act quickly so it can go before the state utility regulatory commission as soon as possible to enact the rates.
The utility staff, however, failed to prepare an amended ordinance for the council to consider, leaving many on the council to question how the staff could expect a vote.
Councilman Mitch Harper, R-4th, asked the council to consider his proposal to freeze the payment the utility pays to city government along with the rate increase next week.
City Utilities, including water, sewer and stormwater, will pay city government more than $7 million this year as a kind of tax payment based on the utilities' property value. The payment is allowed, but not required, under state law, and Harper said putting a cap on the payment would keep as much utility revenue as possible in the utility for maintenance needs.
Councilmen Russ Jehl, R-2nd, and John Crawford, R-at large, were the most hesitant to offer support. Jehl said most of the rate increase is not for water main replacement and questioned whether the entire amount was needed.
Crawford said he's heard from numerous people who questioned whether the city can use some other pots of money to reduce the effect of the water rate increase, especially in a difficult economy. Crawford admitted, however, rates would likely go up.
"I think you've made a very good case for the water rate increase," he said.
