For 125 years the water-sewer system of Atlanta has served a growing population. For over 40 years ongoing maintenance and system development have been seriously neglected. Today the City Council will consider a water-sewer rate paper that may finally move Atlanta forward in solving these problems and ensuring public health and clean water.
The deteriorating water-sewer system is a problem that has been studied exhaustively for many years. As a result, in 1998 the City agreed to fix the system and stop polluting our rivers and streams. The overhaul of our water-sewer system is costly because adequate maintenance and repairs have not been made over a long period of time.
Since the Council last considered this subject on December 19, the following have occurred.
· The Mayor met with the full City Council.
· Finance Department reviewed and analyzed a number of options to examine the impact of rate alternatives, ranging from a 45% increase for all customers to a tiered approach with conservation alternatives.
· Governor Perdue offered up to $500 million over 10 years in GEFA (Georgia Environmental Finance Authority) loans.
· President Pro Tempore of the Senate, Eric Johnson, has offered to present legislation allowing cities similar to Atlanta to have a local option sales tax to fund water and sewer requirements. Such a sales tax would yield from $70-$100 million in new revenue annually for each of five years.
· EPA and EPD reaffirmed the necessity of the City meeting its legal commitments in consent orders and consent decrees.
In response to public feedback, town hall meetings and discussions with the City Council, the Administration worked with Council to introduce a rate paper that encompasses this input.
· We reduced the Capital Improvement Program (CIP) by $269 million for years 2004 through 2008, from $2.540 billion to $2.271 billion, a 10.6% reduction.
· We reduced the Department of Watershed Management’s Operations and Maintenance budget by $6.9 million for 2004, a cut that is to be sustained through 2009.
· We addressed complex accounting concerns regarding rate structures raised by the Internal Auditor.
· We proposed blended rates to promote conservation among customers. For instance, under two widely discussed rate plans, the blended rate for the average household would be approximately 30% compared to the originally proposed 45% for all users.
· We support rolling back the rates as we raise money from potential federal and state sources, and from local sales taxes, beginning as soon as funds are received.
The Administration supports the Finance Department’s rate structures that meet debt service coverage ratios, meet operational and maintenance requirements, and offer the greatest relief to low usage customers through a conservation approach. We support reaching a consensus in an expeditious and efficient manner.
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