OWASA Votes Not to Raise Water Rates

A temporary increase in rates, fees and charges was considered to counteract the budget deficit that could potentially occur as a result of the drought the area suffered.

"We had anticipated continuing water restrictions," said Judith Weseman, secretary-treasurer of the board. "We have to maintain a certain ratio of revenue to debt or potentially risk having bond rates worsened and costs being raised.

"Because we have plenty of water to sell, we'll have plenty of revenue to make or exceed our expected ratio to debt."

The utility saw a 20 percent decrease in water use as a result of the strict water restrictions that were in place since early summer. This drop, while the desired effect of the restrictions, cost OWASA a projected $1.2 million.

OWASA's staff also is concerned about funding potential water purchases in the coming fiscal year should the area relapse into a severe drought.

OWASA also must repay a certain amount of money it has credited to it. The utility's staff was concerned that the available funds would fall short of what was required.

Peter Gordon, vice chairman of the board, said given the sudden rain, it is not necessary to adopt a rate change at this time.

"Heavy rains have made it unlikely that we will need to purchase water," he said. "That has saved our budget, so we won't need to raise rates."

Not only did the rain impact the board's decision, but OWASA's Budget and Financial Planning Committee said the board should abandon the proposed temporary rate adjustment.

The committee members plan to reduce operational spending by 2 percent to 4 percent to offset the potential deficit. This percentage will come from a reduction in spending and being more frugal with OWASA operations.

Following the public hearing on rate adjustment, OWASA Utilities Engineer Mary Darr presented a plan for the selection of a qualified consulting firm that will begin designs for the renovation of the OWASA administration building.

Citing concerns from residents about odors from OWASA's waste water facilities, a resolution was presented authorizing Ed Kerwin, OWASA's executive director, to negotiate a contract for an odor characterization and assessment of an odor control program at OWASA's wastewater facilities.

"Our neighbors are getting closer all the time," said John Greene, general manger of operations for OWASA. "They are becoming more sensitive to odors."

OWASA officials say they have been responding to complaints and fixing the problems they can.

Greene also said consumer complaints are 10 percent of what they were last January.

The board also discussed plans for revising the water conservation ordinances on the books for Chapel Hill, Carrboro and Orange County.

The issue has arisen from concerns over the effectiveness of the policies used to control this summer's historic drought.

The board resolved to work with constituent governments beginning with a work session in January with the goal of having a new ordinance in place by March 2003.

OWASA will hold a drought public forum 7 p.m. Wednesday in the OWASA Community Room to receive public comment on how to proceed with revising the conservation ordinance.

The City Editor can be reached at citydesk@unc.edu.