Phila. Water Dept. wants 28.5% rate hike
The increase, about $196, would start this fall and spread across three years. The water commissioner has final say.
The Philadelphia Water Department plans to seek a 28.5 percent rate increase, starting in October and spreading across a little less than three years.
The last of four proposed increases would go into effect July 1, 2015, raising a typical homeowner's bill $196 a year over today's rate.
The increases would come on the heels of similar hikes from 2009 to 2011, which raised rates 27 percent, or $163 a year over that period for the average residential customer.
The Water Department said in a news release Friday afternoon that it needs to cover a projected $316 million budget shortfall over the next four fiscal years.
The main culprit, the department said, is the need to meet "mandated federal and state environmental regulations" in flood control, watershed protection, and other areas.
The Water Department notified City Council of its plans Friday and will file a formal rate-increase request in early March.
A public-hearing process would follow, with Mayor Nutter, Council President Darrell L. Clarke, and Controller Alan Butkovitz appointing a hearing officer and public advocate.
The decision on whether to approve the rate increases ultimately rests with the city water commissioner.
Community Legal Services, led by attorney Robert Ballenger, expects to be named the public advocate. Lawyers there succeeded last time in reducing the amount of the rate increase, which is still being argued in court.
Community Legal Services objects to basing rate increases on such long-term projections, CLS attorney Philip A. Bertocci said.
Four year ago, the Water Department based its request partly on the expectation of a new labor agreement with raises for workers, he said. The city has yet to agree to a new contract, and wages have remained frozen.
"Certainly a four-year rate schedule isn't one that's reasonable under the circumstances," Bertocci said.
The Water Department said it was taking steps to cut costs and was increasing the eligibility for senior-citizen discounts.
The annual rate increases for each fiscal year from 2013 to 2016 would be between 6.1 and 6.9 percent, and would represent monthly increases between $3.52 and $4.75 a month for the average homeowner.
The department also said that, even with the hikes, the city's rates "will continue to be among the lowest in the region."