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Credit on water, sewer bills loses ground
(by Joseph Koziol Jr. - April 21, 2010)
Credit on water, sewer bills loses ground
By JOSEPH KOZIOL JR.
A proposal to provide a onetime credit for Chardon residents' water and sewer bills lost traction last week. Members of City Council's finance and water and sewer committees expressed reservations about providing the credits.
The committees, however, agreed not to kill the idea at this time and to gather more information before making a final decision.
Council President Philip King had proposed the possible credits of $50 or $75 for residents, saying many residents are facing decreased salaries and layoffs at this time. He said he was hoping to provide some type of relief.
He said many residents have cut back on expenses, just as the city has done. "We're all in this together," Mr. Smith said.
Mr. King said he initially looked at either providing relief through city taxes or water and sewer bills. The relief through taxes did not seem feasible, he said, given that the city is down $400,000 in collections. The water and sewer relief, he said, could be done with "serious financial detriment" to the city.
However, Councilman John Mallen said he did not think he could support the idea. "I've studied this plan, and I don't think it's practical," he said.
Mr. Mallen said it would come at a time when the water and sewer funds were projected to have their lowest ending balance in five years.
He said he also was concerned the public would perceive it differently than city officials. Officials will look at likely rate increases in 2012 and the public may view it as having given them a break only to raise rates shortly after.
In addition, Mr. Mallen said, it could be problematic in administering the program. He said apartment dwellers, who also would receive the credit, may have different deals with landlords, with some including utilities in the rent.
"On balance, I don't think it's a good idea," Mr. Mallen said.
Councilwoman Leslie Bednar said the issue appears to be confusing to the public. She said some might view it as the city giving back money that it did not need in the first place.
Councilwoman Nancy McArthur said the city's tax revenues are down and no one knows if the situation will get worse. If those revenues continue to decline, the city could put itself in a worse condition with the credits.
Chardon Law Director James Gillette said commercial and industrial businesses would not benefit from the credit, although they pay the same rate. He said it might constitute discrimination to exclude commercial and industrial. Although he did not think it would be considered discriminatory, he said, he would research it to be sure.
Given Mr. Gillette's research on discrimination and the undetermined rate increases planned for 2012, Mrs. McArthur said, she did not feel this was the time to consider the credits. "With all these unknowns, I don't feel comfortable at this time," she said.
Mr. Mallen said he did not believe the public would consider it a good gesture on the city's part, given that rate increases will follow so soon afterward.
Councilwoman Deborah Reiter said, rather than look at the onetime credit, the city should instead look at how it may keep those rate increases as low as possible. She said city Finance Director Jeff Smock cannot guarantee the credit will not affect future rate increases.
Mr. King said he did not intend them to be a goodwill gesture, only an opportunity to provide the public with some relief financially.
Mrs. McArthur said, when various residents are consulted on the issue, they tend to say they want to see something for their money, not their money back. She said there are a lot of issues before the city at this time. "I don't see this as a priority," she said.
Mr. King said he had hoped to bring to the issue to City Council for a vote by June or July. "I'm sad to see it die," he said.
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