>>SOUTHERN INDIANA — The New Albany Sewer Board, through its hired guns and its minority of supporters, are attempting to pass an exorbitant rate hike through without justifying its case to the City Council, and more importantly, the rate payers of the utility.
There are many questions that need to be addressed and options to consider before a rate increase should be proposed. Foremost is how did the sewer utility go from EPA compliance and a solid financial condition under the previous administration and Board, to one of financial crisis and back under the probing eyes of the EPA?
Sewer board officials stated that there has been a significant loss of revenue, which, according to them, has led to the current fiscal condition. This could account for cash flow problems, but the real problem is a lack of oversight and sound fiscal policy by the current sewer board; it is an issue of not establishing safeguards to manage bond debt and outside expertise to monitor the utilities finances as the previous board did.
This critical error by the sewer board casts serious doubts on its ability to prudently manage the utility and further calls into question their credibility.
Second, how complete was the rate study and why is the firm that conducted the rate study the same one that has been involved in every major rate increase in Indiana?It appears that this firm did not evaluate alternatives, as many rate consultants will do, and has a vested interest to produce a report that the sewer board wanted, rather than what’s best for the rate payers.
Lastly, why do the sewer board officials, the administration, and its minority of citizen supporters view EDIT funds as “off the table?” Do they not understand that a better use of EDIT is to keep New Albany sewer rates competitive in order to spur economic development, rather than building a $12 million downtown garage and other white elephants that do nothing to create sustainable job, i.e. real economic development?
If sewer rates are raised excessively, not only will they serve as a deterrent to future growth, but they will also create a situation where the customer base, rate payers both residential and commercial, will move elsewhere, thus further causing utility revenue issues.
I would urge the city council to ask these questions and demand more transparency from this sewer board before passing a rate increase — it’s your duty by ordinance.— Tim Deatrick, New Albany
Nordic Festival Puts North Korea in Spotlight
'Rumor Has It' Adele's Rolling in the Grammys
Grohl, Grammy Nominees Cut Up on the Red Carpet
Greece Passes New Austerity Deal Amid Rioting
Coroner: Houston Autopsy Results Weeks Away
Raw Video: Greek Rioting Ahead of Austerity Vote
Raw Video: Child Rescued After Kosovo Avalanche
Pop Music Superstar Whitney Houston Dies at 48
Whitney Houston's Church Mourns Her Passing
Reaction to Houston's Death at Clive Davis Party
79 Turtles Seized at Shanghai Airport
Severe Cold Wreaks Havoc in China
Fuel Removal Under Way on Capsized Italian Ship
Police: Houston Found Dead in Her Hotel Room
Paul Suffers Narrow Loss to Romney in Maine
Palin Brings Anti-Washington Message to CPAC
Obama Scraps Birth Control Mandate
Navy Names Ship for Gabrielle Giffords
Uzbek Man Pleads Guilty in Plot to Kill Obama
Marines: No Punishment for Nazi-like Flag
