Tuesday, November 24, 2009

Russo Clarifies Sewer Rate Increase

"The proposed rate increases have nothing to do with our current delinquencies," Water and Sewer Commissioner Guy Russo said in an interview yesterday. Russo indicated that the department is planning to take care of that problem with budget cuts, a revolving loan from the Water Fund Balance.

"We've already cut $550,000 out of this year's budget," Russo said. "And in preparing next year's budget, increases in spending will only be nominal. It will essentially be a flat budget."

The $30,000 loan from the Water Fund Balance to handle expected foreclosures is expected to be fully repaid through the foreclosure process.

The proposed 3% mid-term increase in sewer rates is required to cover an expected drop in usage going forward, according to Russo.

A public hearing on the proposed rate increase will be held Monday, November 30, 5:15 PM at the Water and Sewer Department.

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