Inaccuracies in Mayor's flier on water and sewer rates

Before writing to your elected officials based on the Mayor's flier, please note the following she chose NOT to tell you: 

1. The 30% increase is for sewer, not water, and over six years (not one year).

2. It was her decision, and a majority of Council in 2005, to raise out of town rates 100% AND expand the water/sewer treatment plant that put us in this mess.

3.  That decision was struck down by the courts in April, and the judge ordered the town to institute a reduction for these customers by Sept. 1

4..  Water/sewer rates were NOT raised from 1992 to 2005, so the utility fund was nearly depleted.  The mayor was on Council all that time, so she is partly to blame for keeping rates artificially low, which led to the massive increase voted in in late 2005.  

5.  Much of the $66 million borrowed to expand the water and sewer treatment plant   -- and, build new offices for some of their personnel to the tune of $7.5 million – was NOT NEEDED.  The expansion was intended to accommodate future growth that she and the Council OPPOSED.

6.  Because of these decisions, in-town rates have risen since 2006 by an average 35% for sewer service and 21% for water.

7.  The utilities department is an "enterprise fund."  This means NO tax dollars support it.  It is supposed to be sustained by water and sewer bills, plus "availability fees" (the charges businesses and developers pay to hook up to the system."

8.  The department is running about a $1.3 million deficit each year, despite the increases the mayor and Council imposed in 2005. 

In my business, if times are tough, I cut costs, and seek additional business.  But the town manager has refused to do that, and many on council are siding with him.

We have cut five positions from the department since 2004, so we can cut more.

It is important for town residents to write Council supporting cost-cutting and finding NEW revenue BEFORE jacking up rates like this.

Unless you act, your water rates will increase by an average of 28% and sewer by 30% over the next six years. 

You should NOT have to pay for past mistakes in the management of this utility department by weak politicians.

Please attend our Aug. 11 hearing at 7:30 p.m. at Town Hall (next to the Tally Ho) and write us at Council@leesburgva.gov

Urge cuts in expenses and finding new sources of revenue BEFORE raising rates.

Thank you

Ken Reid

Councilmanreid@FDAINFO.com

Staff and Consultant proposals for water and sewer rate increases.

During the council work session on Monday July 27th Town Manager John Wells joined by other members of Town Staff and the consultants hired to complete the rate study presented their recommended changes in the Town's utility rates.

The town is reviewing and modifying rates in order to comply with a court order regarding the rates charged to out of town customers and to insure that the town is in compliance with the revenue requirements of the bonded debt incurred by the Utility Fund and insuring that the Utility Fund remains self sufficient. No taxpayer dollars are used to pay for operation of the Utility Fund, the fund operates solely from fees collected from water and sewer bills, as well as connection fees.