Citizens Sewer Committee Eyes $1 Million/Year City Hall Department Charges

Would 1 Percent Administrative Fee Lower Bills Squeezing Ratepayers?

January 30, 2011
By: Dave Rogers

They've been cautioned not to talk to the press, but several members of the city's 15-member citizens sewer fund committee, feeling it their duty to inform the public, spoke to MyBayCity.com.

"More than a million dollars a year goes on sewer bills to fund five city departments," one anonymous committee member said. "But, some of the departments receiving funds don't seem to contribute much to the sewer service."

One suggestion being aired is to replace the budgeted $1,064,000 for city departments in 2011 with a one percent administrative fee, using freed up funds from the budgeted amount to reduce the nearly $5 million annual debt that is contributing to high sewer bills.

A millage referendum has been discussed, the source said, but members almost unanimously rejected that idea as one that would not gain favor with voters. The administrative fee could be imposed by the city commission and would not have to be submitted to voters, committee members said.

So far city officials have been close-mouthed about how the massive sewer debt will be handled and a proposal to float a $50 million bond issue, extending a current $30 million bond for 20 years, as a consultant has suggested. (Please see MyBayCity.com, Jan. 16, 2011, "High City Sewer Bills Relief in Sight Under Plans by Manager Belleman.")

William Kaiser, city wastewater plant supervisor, is slated to make a brief presentation to the Town Hall Meeting tomorrow night at 6:30 p.m. at the State Theater. However, the committee has not completed its recommendations and those are not expected to be revealed for several weeks.

It is not yet clear what the one percent fee would be based on (it is assumed that it would apply to one percent of the customer's bill) or how much it would raise. But the plan's proposer apparently feels it would be a fairer way to fund sewers than assessing customers an arbitrary share of the cost of city hall departments.

Another is to take the sewer department out of the hands of the city commission and place it with an appointed authority. Such a board would be independent and would have the potential to put the sewer system in a more solid financial footing, some committee members feel.

Former mayor Tim Sullivan proposed an authority for the electric department about 30 years ago, but the idea died in the city commission, that would have to appoint the board.

"Like a graduated income tax, the administrative fee would be paid on a proportionate basis," the source said. "Right now we don't know what the basis is of the charges to the customers for the departments."

Financial details may begin leaking out, unless the city staff releases them, in the next few weeks as pressure builds to find a way to reduce sewer bills, the committee members said.

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