Geneva water customers’ costs may stay the same

Geneva water customers will likely get a reprieve from water and sewer rate hikes in the 2011-12 fiscal year.

The city council disagrees with the plan it adopted last year, which was to raise rates a bit each year for three years instead of all at once. That plan proposed raising water rates 5 percent and sewer rates 4.25 percent.

The committee of the whole voted 7-3 Monday to keep the rates where they are.

“We’re hearing from our constituents that this is not the year to be raising anything,” Alderman Charles Brown said.

Alderman Ralph Dantino was the one who moved there be no increase.

Alderman Richard Marks, who voted with the majority, called the water fund “a broken fund” because 60 percent of its revenue goes to pay off debt incurred for capital projects such as building a water treatment plant, and its revenue fluctuates depending on water usage. He favors finding a more permanent fix, rather than discussing water and sewer rates each year. “I think we are going to constantly chase our tails on this,” he said.

Brown, however, has no problem changing rates every year based on the previous year’s actual costs, comparing it to how businesses such as insurance companies operate.

Alderman Ray Pawlak suggested spending some of the fund’s reserves below the $1.5 million requirement set by a previous council, but city Administrator Mary McKittrick cautioned the council about doing that. During a recent meeting with representatives from Moody’s, which sets municipalities’ bond ratings, Moody’s “grilled” her and the mayor about the amount of money the city had in reserves in several funds, including that one.

The discussion branched off in to whether the city should outsource its utility billing, if that would save money. It is considering buying new computer software for all its accounts payable and receivable work, including payroll and electrical billing, to the tune of about $600,000. Assistant city Administrator Stefanie Dawkins said staff had investigated that a few years ago, and it didn’t seem it would save money.

Aldermen Dawn Vogelsberg, Craig Maladra and Robert Piper voted against the rate measure.

“We can’t just cut everything. This is the city’s water supply. Incoming and outgoing. This is a public safety issue,” Vogelsberg said.