Wednesday, March 16, 2011

Town Council votes to increase water rates by 15 percent

By Kristin Adams

VINTON–“In February and March we presented a financial condition report to Town Council. What trend we started to see…was that water and sewer revenue came in below expected [in the town budget]. If we did nothing, we would be $300,000 in debt by the end of the fiscal year,” Vinton Town Manager Chris Lawrence said at the Town Council meeting on Tuesday.   

To close that gap, town staff found $166,000 in budget cuts and has opted to use approximately $30,000 of the already-depleted water and sewer savings account. Even with those adjustments, however, the town would still be $112,000 in the red by the end of the fiscal year in June. To make up the difference, Town Council was asked to vote on an ordinance to raise water and sewer rates by 15 percent effective April 1, 2011.

After hearing statements from approximately 14 Vinton residents and businesspeople during the public hearing on Tuesday, all opposing the increase, Town Council unanimously voted to raise the water rates. That means that on average, users will pay an extra $2.64 per month. For many Vinton residents, however, even a few extra dollars will be a hardship.

“I’m on a fixed income,” said Vinton resident Pete Tolley. “I can’t afford another 15 percent increase. That’s all I have to say.”

“I don’t have a dishwasher, I don’t have a garden. I’d like to wash my clothes in the washing machine, but I’m scared to,” said Donna Zebrasky. “I was just outraged when I hard it [on the news]. I had to walk down here to speak my mind, and I’ll have to walk back.”

While Town Council members sympathized with the speakers, in the end they said they had no choice but to increase the rates. Vinton operates its water system independently, and runs the water and sewer department as a business. It is expected to be fully funded through charges for service, and is not subsidized by tax dollars. In addition, the town—which has a $3.1 million yearly budget— will need to spend at least $31 million in the next 10 to 20 years to replace the 40-year-old water and sewer infrastructure. Even with the 15 percent increase, past budget cuts, and the 10 percent water rate increase a little more than a year ago, the town is still struggling to balance the water and sewer budget.

“We’re not even keeping our heads above water. We’ve not been paying for what we’re using. We’ve just been borrowing from the future, the future, the future,” said Councilman Matthew Hare. “There’s just not enough money there to pay the bills, and we have to pay the bills. I have to support it.”

“I don’t know [any] other way out of this. You can’t keep taking money out of reserve,” added Councilman Bobby Altice. 

The Council members were apologetic, but in the end they all voted to pass the ordinance. Effective April 1, Vinton residents and businesses will begin paying 15 percent more for water and sewer services.

“At that, we can maintain our current level of service,” Vinton Mayor Brad Grose said.

Compared to water and sewer rates in surrounding areas like Roanoke City and Roanoke County, however, even with the increase the rates are still the lowest in the Valley according to Grose.

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One Response to “Town Council votes to increase water rates by 15 percent”

  1. Duane Hawks

    I find it interesting that according to a source within the ToV Administration…”its a done deal,” and that was before the meeting even took place. Its also interesting to note that if the ToV does run the Water and Sewer Department as a company, that they do it very poorly considering I see multiple employees standing around watching while only one works. If the Water and Sewer were to be run as a business…heads would roll. Go figure, only our government gets away with such disregard for its citizens and their opinions…hopefully the citizens of Vinton will express their dissatisfaction at the next election.

    #7199

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