Water, sewer rates are going up in LG

Published 8:39 pm Thursday, June 16, 2011

Residential sewer rate will increase $2.26; residential water rate will go up 99 cents

Sewer and water rates will be going up, and voters on the city’s north side urban growth boundary will get a chance to say whether they want their neighborhoods included in the city limits, according to actions taken by the La Grande City Council Wednesday night.

In a busy, brisk meeting at City Hall, three councilors voted in favor of the sewer and water rate hikes, while all agreed that north side residents should have a chance to vote on annexation.

On the utility rate increases, two councilors – Mayor Dan Pokorney and Councilor Silas Kelty – voted no, while Jerry Sebestyen, Gary Lillard and Jon Bozarth cast votes in favor.

Two other councilors, Kelly McGee and Mary Ann Miesner, were absent from the meeting, but the five present constituted a quorum.

Reading from a prepared statement before separate votes on the sewer and water increases, Kelty said “the timing of the fee increase couldn’t be worse.”

“It is my belief that a period a financial hardship is the absolute worst time to be taking money out of the pockets of residents and businesses,” he said.

Kelty said his concerns go beyond citizens struggling to pay bills. He said he thinks the higher rates will hurt La Grande’s chances of recruiting and retaining businesses.

“Since part of a business’ overhead is utility costs, I have to ask, what message do we send to the business community by increasing their operation costs?” he said.

As discussion continued, Pokorney said he stood with Kelty.

“I also can’t support it. I think it’s an undue hardship put on the voters,” the mayor said.

But the others casting votes pointed to the need to keep systems in good working order and pay for unfunded state and federal mandates.

And Sebestyen said efficient sewer and water systems are essential for a good business climate.

“A deterioration of water and sewer service downtown would drive businesses away as surely as a raise in rates,” he said.

The basic residential sewer rate will increase $2.26, from $32.26 to $34.52. The residential water rate will go up 99 cents, to $15.08.

Staff reports say the hike in the sewer rate will generate $160,000, while the water user rate increase will generate $119,000. The money will be used for operations and maintenance, and system improvements.

On the annexation issue, all five councilors voted in favor of asking voters in three neighborhoods that lie within the city’s northside urban growth boundary whether they want to be included as city residents.

If the areas are annexed, residents would be subject to city property taxes they do not pay now. However, those who are not currently hooked to the city water and sewer systems would see a decrease in their user rates.

Also, the annexed residents would get police and fire protection primarily from the city departments. Currently, the territory is covered by the Union County Sheriff’s Office and the La Grande Rural Fire Protection District.

The annexation is one of several revenue-enhancing moves recommended by the council-appointed Long-term Budget Solutions Advisory Committee. It would yield an additional $70,000 a year for city services.

The vote placing the question on the Nov. 8 ballot passed with little discussion Wednesday. In answer to a question, Planner Mike Boquist said staging the vote will cost the city a few hundred dollars in legal fees, and about $1,000 in advertising.

On procedure, City Manager Robert Strope said that the city has the option of placing the question before all city voters. However, only the votes of the people in the affected areas would count toward approval. City-wide residents would have only the power to vote the measure down.

Pokorney said he favors putting the question on the ballot because several residents in the areas in question have asked for it.

Also Wednesday, the council formally adopted the Urban Renewal Agency and city budgets for 2011-12. It also ratified a three-year labor agreement with the Employees Association.

The association, representing workers at City Hall, the library, Parks and Recreation Department and Public Works, agreed to concessions including a freeze in wages, step increases and cost-of-living adjustments and changes in health care coverage.