Wasilla needs to re-evaluate water/sewer rates

I would like to bring to your attention two ordinances that Wasilla Deputy Mayor Colleen Sullivan-Leonard and I believe will provide some economic benefit to our city businesses and residents. Through Ordinances 13-15 and 13-16, we plan to ask the council to freeze the water and sewer rates at the fiscal year 2013 rate level and not allow the implementation of an additional 15 percent increase for fiscal year 2014.

As many of you are aware, the city embarked on a five-year plan in 2009 to raise the water and sewer rates by 100 percent to cover losses, pay depreciation and build a reserve fund for replacement of the system as it ages. I did not support and did not vote for this plan.

During the last four years, our businesses and residents have incurred some tough economic challenges and I believe we have made that much more challenging by raising the rates so drastically in such a short period of time.

With the end of fiscal year 2013, we see that the city will have a large budget surplus, which I believe a portion should be used to bring relief to the residents and businesses that are on our water and sewer system as opposed to implementing another rate increase. It’s time for the city to re-evaluate how it is charging our users and see if we can find a more equitable way to have a healthy water and sewer fund that does not require users to pay higher fees than any other city our size.

I reviewed other cities that are of a similar size within the state (Homer, Kenai, Soldotna, Seward and Palmer) and find that our water/sewer rates are the highest! In fact, based on the proposed increase for fiscal year 2014, our rates will be approximately 90 percent higher than our sister city of Palmer.

Most of the cities I looked at seemed to be realistic in their policies on how water and sewer enterprise funds are managed. The cities I reviewed displayed shared costs with the ratepayer, which makes good economic sense by not causing undue hardship on our local businesses and residents. I believe our city should do the same.

The city needs to re-evaluate the water/sewer rates and the rate structure policy based on the fact that a healthy water and sewer system benefits more than just individuals and businesses on the system. A major part of the water and sewer infrastructure system was funded by federal and state sources and it is unrealistic that the ratepayers would bear the entire burden to pay to replace the system, especially when the state and feds will fund a large share of the replacement of the system. This year, the city received $3 million from the state Legislature for fiscal year ’14 for our sewer expansion.

What does a rapid increase in water and sewer rates do to our ratepayers and residents?

• This increase causes a major financial hardship on residents during this recession, especially on low-income residents and our seniors on a fixed income (large percentage of residential users).

• This increase hurts small businesses.

• This increase hurts economic development in the city. Why would a business want to locate in a city that charges such high rates?

We know that the city water and sewer system benefits more than the users on the system:

• The city water and sewer system has been a major reason for the city’s current sales tax base.

• A main reason for expansion of the water and sewer system was to attract The Home Depot, Fred Myer, Wal-Mart, Target and Lowe’s. These stores provide a major amount of the city’s sales tax revenue.

• Everyone in the city uses the system when they shop at businesses in the city.

• Cities want residents to hook into their systems for environmental reasons, and is a reason for city code that forces new structures built in the city core to tie into the wastewater system if within a certain number of feet.

• For life, safety and liability reasons, we have a water system that supports a hydrant system in the core area of the city. Having a water system also brings down the insurance costs in the city of Wasilla.

Please join deputy mayor Sullivan-Leonard and I in supporting Ordinances 13-15 and 13-16 to not raise your water and sewer rates this coming fiscal year. As a city we must be good stewards to our community and this is one way to achieve that. A public hearing is at 6 p.m., July 8 at Wasilla City Hall; please come and voice your opinion on this matter.

Leone Harris holds Seat A on the Wasilla City Council. She was elected in 2008 and re-elected in 2011.