Auditors request delay in city water rate increase
One week deferral sought to complete review. Public hearing on water increase scheduled before the Board of Estimates tomorrow.
Above: City Auditor Robert L. McCarty with Comptroller Joan Pratt, who supervises the audit department.
In an unusual move, the city audits department is asking the Board of Estimates to defer for one week approval of a package of water and sewer rate increases.
A 15% rate increase to start on July 1 – followed by 11% rate increases each in July 2014 and July 2015 – is on the board’s agenda for approval tomorrow, along with a public hearing where citizens can address the board in two-minute presentations.
The hearing is scheduled for 9 a.m. in Room 215 of City Hall. Those seeking to testify should bring an ID and come to the building at 8:30 a.m. to sign in.
42% Hike in Three Steps
The audits department is requesting a one-week delay to give it additional time to review the documentation supporting the water and sewage increases, which will total 42% between now and July 2015.
(This increase is separate and distinct from the stormwater fee set to go into effect next week in Baltimore.)
Although the proposed water and sewage hike was announced last month, the Department of Public Works did not meet with auditors until last Tuesday, the agency told the board.
The meeting did not give auditors enough time “to verify that the proposed rate increases are needed to keep the Utility Funds self-sustaining and to provide adequate cash reserves for bond covenants and future capital projects.”
The auditors also requested “additional necessary information” from DPW in order to submit their report to the board, which is standard practice for a self-supporting “enterprise fund.”
Audits said that it anticipates the review will be completed in time the board’s July 3 meeting.
Asked to respond, DPW spokesman Jeffrey Raymond said today, “The department believes the time allowed for review was reasonable and not out of line with previous years.
“Our staff has been available to the auditors to provide any information they needed. The one-week extension is not our preference. Extended delays could impact our capital projects.”
Votes Controlled by Mayor
It is unknown whether the board will accept the one-week delay, or will vote on the rate increase tomorrow.
Mayor Stephanie Rawlings-Blake controls the five-member panel through her vote and the votes of two appointees, City Solicitor George Nilson and Alfred Foxx, director of the DPW that is requesting the rate hike.
Her spokesman, Ryan O’Doherty, did not immediately respond to a request for comment.
City Comptroller and board member Joan Pratt has been critical of the city’s water agency’s billing practices and expenditures.
Most recently, she and City Council President Bernard C. “Jack” Young voted against a $27 million consulting contract to three engineering firms, saying the city cannot afford “no-limit contracts to consultants.” Pratt submitted documents indicating that the city will pay as much as three times more for consultants “to attend meetings and review reports” than if the work was done “in-house” with hired staff.
DPW Director Foxx defended the practice, saying it was necessary to meet the city’s consent decree with the Environmental Protection Agency (EPA) to stop sewage overflows into the harbor.
Petition Drive
In anticipation of tomorrow’s public hearing, community advocate Rhonda Wimbish announced today that she is dropping off 650 signatures from elderly and disabled residents who “cannot come to City Hall to give personal testimony of how the water bill increases and errors have caused a hardship in their lives.”
Wimbish said city representatives attending community association meetings “are telling residents that the water increase will be only 15%, when it’s actually a total of 42%” over three fiscal years.
“The residents of Baltimore City are paying for the enjoyment of others, while we struggle to maintain our homes, communities and a decent lifestyle,” she said in an interview.