09-24-73 Council Meeting Minutes

Home Browse Search

COMMITTEE OF THE WHOLE MEETING (CONTINUED) charged for a six -inch watermain with the city picking up the balance. He stated that it is the city's responsibility to provide service to the newly annexed areas. Miss Guthrie asked about the impounding of the taxes in the newly annexed areas. She felt that any plans to use the increased rate for the purpose of providing water service to newly annexed areas only meant that the city residents would be paying double because the taxes being impounded in the annexed areas would only be used for exclusive improvement of that area. Miss Guthrie felt the money being spent for the replacement of the meters was quite costly. She stated that it would cost over a million dollars after the five or six -year period. She stated that there was no income in the ordinance regarding the hydrant rental. She asked about this. She felt serious consideration should be given to the senior citizens. She concluded by indicating that, if the proposed ordinance was postponed, per- haps some of the questions raised could be answered and some solutions found. Mrs. Janet Allen, 125 West Marion Street, asked about the increase in the hydrants and indicated that they were bein painted free as part of a beautification project. She stated that, every time an annexation comes up, it is shown that the city will profit and there will be no increase in the amounts paid for city services. She wondered if that really was true. She asked if the taxes had been decreasing. She pointed out that Mr. Roemer was a part -time city attorney, and she felt that if the money was confined to the usages of the Waterworks, the increase in the rate would not be necessary. Mr. Pa- Bognar, 805 West Washington Street, stated that he realized that the costs of everything were goin up. He also stated that he realized there must be some sort of an increase in the water rate; how ever, much of the needed information regarding the increase had not been made available. He was hopeful that, at least, the Council had been provided with the necessary information. He stated that, if the increase was necessary, he was hopeful that it could be accomplished in a period of three steps. Mrs. Lee Swan, 2022 Swygart, indicated that the minimum bill for water was $60 a yea: Trash removal was another $30, and now the water rate would be increased 50 %. She felt that, unti such a time when the citizens are aware of all that goes on within the Waterworks System, this muc; of an increase would not be taken favorably by the taxpayers. Mr. Krueper stated that he wanted to clarify a few statements made by the citizens. He indicated that the Waterworks Department had been audited in spite of many people saying there has never been an audit. He stated that the State Board of Accounts had audited, a certified public accountant had been working with the department regarding the increase, and the Public Service Commission had had auditors in the office checking out the increase. He indicated that, every year, the Waterwork prepares an annual financial statement for the year and this financial statement is public record. He- explained that he cut the Waterworks expenses nearly $200,000 last year, and he had never received one word of thanks from the citizens. Despite the 5% increase in salaries approved by the Council, the payroll for the department had not increased. He stated that quite a large amount of "profit" had gone into the payment of bonds and another large amount of money was being used for the outside meter installation. He indicated that he needed a 35% increase just to pay the bills and live up to the ordinance set by the Council in the past. Mr. Cohen asked why the payroll of the employees within the Waterworks Department was not published in the South Bend Tribune. Mr. Krueper indicated that publication of the payroll would cost a great deal of money, and he stated that the Tribune had had coverage on the payroll previously. Mr. Cohen asked about the automobile situation in the Waterworks Department. An unidentified woman in the audience asked why it took four men and one truck to open a fire hydrant. Mr. Krueper indicated that the opening of the hydrants is not a simple matter. He stated that it requires a change of valves in flushing the mains. The woman indicated that, when she had watched the men on the truck, only one man had actually opened the hydrant while the other three remained in the truck. Mr. Krueper stated that the men were probably opening the last hydrant in that series and that only one man was needed for that. Mrs. Washington asked about the fee required of the property owner when the change -over to the outside meter was made. Mr. Krueper indicated that there was not a charge except in the instance when the property owner requested the change -over. He stated that, if the citizens would be patient and wait until the change -over of their meters, there would be no charge; however, if a special request was made, the charge was made to cover the cost of the man making a special trip to the home. Mrs. Washington asked about the $12 charge for the hookup of the water. Mr. Krueper indicated that the $12 charge is a one -time service charge for the person that is continually moving. He explained that a man must be sent out to the home and take a final reading, this being only one part of the operation. Then when the individual establishes residence again, the books must be adjusted and the hookup at the new home made again. Mrs. Minton stated that she read her own meters. She asked about the charge made in that instance. Mrs. Smith could not understand the increase in the water rate because the budget had been reduced. Mr. Krueper indicated that, if he had not reduced the budget last year and cut expenses, the Waterworks System would have been in debt last year already. He stated that, in 1971, the income was $240,000 more than in 1972. Expenses in 1971 were $196,000 more than in 1972. An unidentified woman in the audience wondered why an established rate could not be used and then a charge made for water used over and above that amount. Mr. Krueper indicated that he realized that the elderly people might find the increase quite high; however, policies must be made and, if the increase was not given to everyone, the rest of the people would have to absorb the cost. Mrs. Connie Green, 3217 Dunham Street, could not understand why the transient person must pay for a new hookup. She stated that many of the people who are constantly moving are very poor and must move because of the job and housing situation. Mr. Krueper stated that there must be a charge made for this service and he did not feel that the home owner who stays in one place should be made to pay for this. Mrs. Washington referred to an instance when she had contacted the Water Department and had not been given that information. She felt that practice was not always followed. Chairman Newburn requested that Mr. Krueper check into that matter. Mrs. Allen asked if some consideration had been given to the high - volume users. Mr. Krueper stated that those persons get a better rate now than the average home owner. Council President Nemeth stated that, over the years, the Water Department had existed in a state of virtual anonymity. He indicated that, if the Council had not requested a budget, it would not performing its duty in proper fashion and the Council would be at fault. He indicated that a pre- liminary budget had been forwarded to the Council in January; however, he felt a budget should be submitted to the Council at present in ordinance form before any action was taken on the proposed ordinance. Council President Nemeth made a motion to defer action on the proposed ordinance until such a time when a budget in ordinance form would be submitted to the Council, seconded by Councilman Miller. The motion carried. Councilman Serge spoke in defense of the administration, indicating that he felt the administration) was trying to give the citizens a modern and efficient program. He expressed concern for those per sons living on a tight budget and pointed out that the senior citizens had been given consideration