Some Utility Rate Hikes Effective Today

Today, basic wastewater (sewer) rates for residents living inside the city limits will rise from $11.50/month to $12.50 (for the first 2,000 gallons); and for each additional 1000 gallons over that, there will be a 28 cent increase. Customers outside the city limits will see similar increases. Even with these hikes, the City's Sewer Utility is still expected to finish next year about $176,000 in the red. [Note: Most Fairhope residents' sewer bills are calculated using monthly water meter readings] The Mayor's proposed new electric rate hike was apparently included in the FY 2010 budget as well (passed Monday by the Council)-- and may take effect on Jan 1, 2010 (after a "rate study" is done, Council's approval). [Eliminating altogether the vague "fuel adj." charge at the same time--called a "magical thing" by another councilmember--has been proposed as well] The $325,000 budgeted this year for the "Community Development Fund" ($150K of it to come from the Electric Fund)--donations to church charities, boys clubs, business, environmental and veterans' organizations, et al--comes exclusively from utility revenue (as well as several millions transfered to the general fund to pay salaries/operate the city). The Mayor justifies utility hikes/profits (vs. "tax"-dollars) being used for such purposes-- because utilities "compete." (Oct 1st is the first day of the 2010 fiscal (budget) year)

Comments

Anonymous said…
If the City's in such great financial shape as the mayor claims, why is he still raising our utility rates. please explain?
BamaGuy 1955 said…
Personally, I don' care if they raise my rates if necessary, as long as its all discussed and done out in the open. Explain why its needed. All the sneakiness and trying to hide it from us is what always gripes my ass about it. One guy called it a shell game once.
Anonymous said…
Why give money to charities when there is not enough money to cover expenses. Wish my household budget worked like this.
Anonymous said…
sure, approve a rate increase. . then do the rate study. makes perfect sense the way we do things around here. doesn't it?
TheBerrys said…
The Mayor's nuts! What competition? The only choice in my neighborhood is Fairhope Electric, Water, Gas, Sewer. Guess I could dig a well, build a outhouse and use candles instead.
Anonymous said…
water rate is bound to go up if the sewer rate is going up. guess catching rain water like they do in Bermuda is the next best thing.
Anonymous said…
that honor flight thing is the worst of all. takes veterans on trips to DC. most of those fellows can afford to go on their own. i know some of them. just ripping off the government.
Anonymous said…
city raised rates, 3 increments. first last spring, one in Oct. 09, next in 6 months or so. 2% sales tax and rate increases to keep money to rebuild infrastructure. Yeah right...money to buy land with ford at the helm of the purchase, money to keep giving freebees to city employees, meanwhile, my neighbor lost his job, health care, can't buy food or clothing for his kids and his house is in forclosure...go figure. He, by the way, was turned down for a job with the city before council took over employee management...mayor didn't like him.
Anonymous said…
Why aren't the Council meetings televised? They could be streamed over the internet like Fairhope High School did with their soccer games last spring.