News and Tribune

March 18, 2010

New Albany City Council postpones vote on sewer rates

By MICHAEL L. JONES
newsroom@newsandtribune.com

NEW ALBANY — After a contentious meeting Thursday night, the New Albany City Council postponed the second vote on a controversial ordinance that would raise sewer rates nearly 70 percent over the next decade.

The bill’s sponsor, Jack Messer, was absent from the meeting, but several council members expressed concern about asking citizens to pay higher rates in tough economic times. They suggested using other city funds to finance the EPA mandated improvements. The council scheduled a series of public meetings beginning Tuesday through Thursday of next week to discuss these alternatives. However, Greg Fifer, the Sewer Board attorney, said the council had to act before the end of April to resolve the issue or risk losing the state loans that are tied to the rate hike.

Council President John Gonder said he hoped all the scheduled meetings would not be necessary for the council members to resolve their differences. However, 5th District Councilwoman Diane McCartin-Benedetti was clearly perturbed that the council refused to vote on the ordinance Thursday night. McCartin-Benedetti said other members of the board were offering solutions without specifics and wasting precious time. If the city defaults on its bond debt servicing, the state could put the sewer system in receivership.  

“This rate from the state could go away, that’s really what upsets me,” McCartin-Benedetti said. “I don’t want to be responsible for something going into receivership while I’m in office, you don’t know what that can do to us. If we keep talking about this and no one is coming out with figures, I say we should meet every single night, all of us. Every single night until we hammer this out and come to an agreement.”

Third District Councilman Steve Price and First District Councilman Dan Coffey were the most adamant against raising the sewer rates. Messer’s original bill called for the rates to raise 70 percent. But the bill was to be amended to create an alternative hike of 36 percent this year and 19 percent by 2012. A proposal for 3 percent hikes after that was not voted on. Fifer said the 36 percent and the 19 percent hikes were mandates from the state in order for the city to get a $7.4 million loan. Price said he feared that the sewer problems were driving people from the city.

“If we raise these rates we’re going to lose a lot of numbers,” Price said. “We’re going to have to revisit this next year and the year after. I haven’t seen the Census numbers, but I bet we’re already losing people.”

A number of citizens showed up to protest the proposed rate hike. Sarah Spivey said that she is already paying $75 a month for a home with three people. Spivey, 74, said she lives on a fixed income and she feels the money for the sewers should come from somewhere else.

“I can save them $100,000 just tonight making suggestions,” Spivey said. “It’s outrageous. I pay $20 for water and $75 for my sewer bill. You think you elect these people to take care of you. You shouldn’t have to go to these meetings and protest.”

New Albany Mayor Doug England addressed the council before they took up the sewer ordnance. He pointed out that they appointed two members to the sewer board which suggested the rate hikes and he appointed one member. England said the sewer problems started prior to his administration and they would continue afterward unless someone dealt with the problem head-on.

“We have to work together and not against each other,” England said. “I have heard some negative things. I don’t know what the rate should be. The sewer board told you what the rate should be. I trust my appointment, I hope you trust your two.”

It is still unclear where the meetings will be held, although they are expected to begin at 6 p.m. in the City-County Building.



Michael L. Jones is a freelance writer living in Louisville.