TBO.com - TBO is Tampa Bay Online

City wastewater rates could rise by a third over next 3 years

ADVERTISEMENT

By CHRISTIAN M. WADE | The Tampa Tribune

Published: June 18, 2009

TAMPA - City residents might have to dig deeper into their pockets to pay for sewer service later this year.

Mayor Pam Iorio wants to increase sewer rates by nearly 34.5 percent over the next three years to cover rising costs and revenue declines in the wastewater department.

Bonnie Wise, the city's finance director, told city council members today that increased expenses coupled with rising debt from outstanding bonds means the wastewater department would not be able to meet operating expenses within the next two years.

To cover the shortfall, the Iorio administration has proposed increasing rates by 14.5 percent through 2010; 12 percent in 2011 and 8 percent in 2012.The proposal also would increase a surcharge on customers outside city limits from 18 percent to 25 percent.

Figures provided by the city indicate the average customer pays roughly $33.60 a month. After three years, that bill would be about $45.

"This is a horrible time to be presenting a rate increase, we know that," Wise said.

Wise said skyrocketing cost of chemicals used to treat wastewater as well as steadily increasing energy costs are straining the sewer department's $98.7 million budget.

The pending closure of the Smithfield Foods meat packing plant, which for years trucked hundreds of thousands of gallons of industrial-strength wastewater to Tampa's Howard F. Curren wastewater treatment plant for processing, will mean $800,000 less revenue.

Hillsborough County also plans to end a contract with the city to treat wastewater from Brandon, which will mean $2.5 million less for the department beginning next year.

Insurance and pension costs for the wastewater department are projected to increase by nearly $1.5 million next fiscal year, Wise said, which has added to the financial burden.

The number of accounts also have declined by 1.5 percent this year, Wise said.

"We're not happy about this at all," said Ralph Metcalf, director of the city's wastewater department. "But without these rate increases, we will run out of money in 2011."

Tampa's wastewater rates, which are still considered among some of the lowest in the Bay area, were last increased in 2006 by 5 percent and 15 percent in 2004.

Council members could hold a vote on the proposed increases in late-August, following two public hearings. The rate increases would have to be included in the 2010 budget.

"This is a tough pill to swallow," Councilman John Dingfelder said. "It's a huge increase."

Reporter Christian M. Wade can be reached at (813) 259-7679

Share this:

Loading Comments...

Email Print

ADVERTISEMENT