After discussion and deliberation, Weirton City Council, by a vote of 4-3, approved the first reading of an ordinance increasing sewer rates by a flat rate of $2.70 per month.
Chuck Knurek of Griffith and Associates, the accounting company hired to perform a Rule 42 rate study for the Weirton Sanitary Board, joined council via telephone to answer any questions or comments council may have had.
Ward 7 Councilman Max Fijewski stated he visited the subject many times and submitted his concerns in writing to several members of city council. He questioned reports stating the $2.70 rate increase was a "bare-bones" request.
"This is a 90 percent increase," Fijewski stated noting the minimum requirement for bond issue sits at 115 percent and the increase brings the board's percentage up to 254.62.
Fijewski said he is in agreement that an increase is needed and he would support one if it were lowered.
Knurek stated the 254.62 comes from the division of total cash available for debt service - $649,986 - and the sub-total for long-term debt - $255,274. He said that percentage does not include additional debt service requirements.
"Your bondholders want to see bond issues at 115 percent of debt coverage or higher as well as a positive cash flow and if you lower it more than $2.70 you will have a negative cash flow," said Knurek. "This is not a 'bare-bones' increase but it's pretty close to it."
Ward 1 Councilman Ron Jones stated when the $2.70 increase per month is broken down into 30 individual days, the increase amounts to $0.09 per day, which he noted is minimal. He said it would be "irresponsible" of council to deny such a minimal increase when it is needed.
"There's no good time for an increase but it just has to be done," said Jones.
Utilities Director Butch Mastrantoni stated the ordinance must go through another reading before council before it will go to the state Public Service Commission. After that, he said the ordinance will be open to public comment.
"There is usually about a four to six month lag before the board will see an impact of the dollars from the increase," he added.
Mastrantoni said if the ordinance passes all of its readings and there are no issues with the PSC, residents will not see the increase on their bill until about July or August. He said a rate increase ordinance cannot go into effect until 45 days after the second reading and could take up to another 60 to 90 days before it goes into effect after it goes through the PSC.
(Dickson can be contacted at adickson@weirtondailytimes.com)
