Published: October 11, 2008 02:11 am            

Jeff sewer rates could take a hike

Jeffersonville residents may face an increase in their sewer bills if a proposed plan to perform $33 million of work on the city’s ailing sewer system goes through.

The plan is designed to bring the city into compliance with federal Environmental Protection Agency standards under the Clean Water Act.

“Part of our goal is to minimize [the EPA’s] desire to assess fines,” said Larry Thomas, the city’s communications director. “We would rather spend our money fixing problems than paying fines.”

Thomas said a hike in sewer rates is “always a possibility when spending this kind of money.”

At a May meeting of the Jeffersonville City Council, an estimated rate increase of $41 — taking bills from $24 a month to $65 a month — was discussed, though Mayor Tom Galligan said that was a very early projection. The EPA may require that the city increase sewer rates up to 2 percent of the median household income of the about 12,500 sewer customers.

The plan — proposed by consulting engineer Jorge Lanz at an executive session of the city’s Sanitary Sewer Board Tuesday — will not only address the EPA’s concerns, but also growth in the city.

“If we’re going to fix the EPA problems, then we’re going to do it in a such a way that will allow us to grow,” Thomas said.

The initial $33 million phase of the sewer project will address “early-action issues.” Those issues are improvements that could produce a dramatic reduction in the frequency of combined stormwater and sanitary sewer overflows, relative to the amount of money spent by the city to make corrections, Lanz said.

He identified 10 as yet unfunded projects that would address EPA concerns about pollution. The EPA estimates that Jeffersonville overflows contribute about 12 percent of the wastewater pollution in the Ohio River in the metro area. Louisville contributes an estimated 50 percent.

As part of an effort to increase funding, the city is attempting to collect about $1.2 million in unpaid sewer bills. Thomas said placing liens on houses with unpaid sewer bills is the best route to collect payment if contacting customers is unsuccessful. The past-due amount can be placed on property tax bills or can be collected if the home is sold.

The sewer board has not taken any action on Lanz’s proposal, but the first step will be to hire a financial adviser to assess the cost of the plan and find funding. Thomas said it will be a few months before anything related to sewer rates is decided.

But it may be the only way to fund the improvements required by the EPA, short of paying fines.

“We don’t have much of a choice,” said Council president Ed Zastawny. “It’s better that we stay in control of the situation than have the EPA sue us — we don’t have a lot of flexibility. Either way, we’re going to have to fund a bunch of projects and do a lot of work.

“If there’s a need to do these projects and a need to raise more money, it would be through sewer rates.”

        

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