06-25-10 Council considers rate increase to meet sewer mandates

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“We need to meet both federal targets and our citizens’ expectations to address public- health concerns and preserve the beauty of the river,” said Mayor Stephen J. Luecke. “During consent-decree negotiations, the U.S. Environmental Protection Agency and the Department of Justice have been clear: Regardless of the economic hardship in our community, we must make substantial progress toward the goal or face the threat of legal action and daily noncompliance fines.” Progress in the first four years has been significant. The number of basement backups declined by 20 percent in 2009 when compared with 2005. The City also reduced overflow to the river – 60 million gallons fewer in 2009 than in 2005. “This is a 20-year solution. These types of problems can’t be solved in four years,” said Public Works Director Gary Gilot. “This is about getting sewage out of basements, reducing combined storm-sanitary sewer overflows into the St. Joseph River and enhancing our quality of life in the process.” The public hearing will take place before second and third reading of a rate-increase ordinance, which the Council will review for adoption. The meeting begins at 7 p.m. in the fourth-floor Council Chambers of the County-City Building, 227 W. Jefferson Blvd. The administration’s proposed rate increase being considered by the Council includes steps by Mayor Luecke and the Council to buffer the burden on rate-payers, keeping annual increases to single digits: First, an administrative change will help generate nearly $12 million in capital for the long-term control plan. The South Bend Sewer Utility makes a payment in lieu of taxes (PILOT) to the City’s operational budget. That payment will be capped at 5 percent annual growth to allow the utility to self-fund some of the needed capital investment. Second, the City of South Bend will pledge $10 million from Economic Development Income Tax (EDIT) funds over the next four years to support economic development-related investment in the long-term control plan. For detailed information about South Bend’s CSO long-term control plan and the proposed sewer-rate increase, visit www.SouthBendIN.gov/cso The site includes: The 2010 River Report, a 12-page document that explains the nationwide challenge of CSOs, outlines work done to date, describes projects planned in the next phase of work and features reports on innovative, cost-saving solutions, such as CSOnet, through which South Bend is becoming the world’s first city to monitor and control overflows with technology. A rate study and comparative figures about sewer rates in other communities. A letter from Mayor Luecke to business leaders about the proposed increase. - 30 -