Follow-Up: Paying for the City's Sewer Repairs

With some residents shocked that the in fines for violating the Clean Water Act, City Council insisted Wednesday night that the 26 sewage spills were no surprise. 

"This issue is a serious health issue," said Mayor Pro Temp Michael Cacciotti. "...This is something we’ve said at City Council meetings. ...It’s no surprise. We knew it."

"We are trying to deal with a —some probably older—a water system and a road system that you know the citizens can’t afford."

Residents who spoke at the City Council meeting insisted that there have been more spills than reported, and asked that Council put forth a complete record of happenings on its website.

"...The picture is a little bigger—I think—than the community realizes. This is a health hazard. This is water carrying pathogens down the streets that we walk in, that our children are exposed to, our pets," said Natural Resources & Environmental Commission (NREC) member Bill Kelly.

Paying the Way

City Staff presented a draft sewer rate increase plan to the NREC last month, which called for a 12 percent increase in 2012-13; 10 percent in 2013-14; 10 percent in 2014-15; 9 percent in 2015-16; and 9 percent in 2016-17.

"Typically, water and sewer systems are repaired and maintained by the funds they help generate through usage," said Interim City Manager Sergio Gonzalez. "Enterprise funds are supposed to be self-sustaining and used exclusively for the purpose of where and how their funds are generated."

Gonzalez says sewer rates will definitely be considered in the agreement between the City, the Regional Water Quality Board and Attorney General’s Office. Yet while it will come before City Council Nov. 16, any sewer rates will first need a public notice and hearing process per Proposition 218 before being implemented.

If  were passed, City Council could also designate some of those proceeds for specific uses, such as sewage repairs.

With the 3 percent UT tax expiring in 2013, for example, an advisory vote suggested no more than 35 percent be used for employee compensation and no less than 65 percent for infrastructure. 

"With a limited budget, our Council has been very good about respecting the use and limitations posed by the funds/revenues our City has access to," said Gonzalez.

What do you feel is the best way to fund this project?