Wednesday, May 2, 2012

SEWER RATE TO RISE AND SURCHARGE TO BE INSTITUTED

On May 1st. the Oldham County Fiscal Court passed an ordinance raising sewer rates by five percent while also instituting a surcharge of $5.39 per month per customer. The surcharge will remain in place for twenty years. This increase comes after a rate increase of eight percent last year. The purpose of the surcharge is to pay for debt service on bonds that the Environmental Authority (Oldham Sewer District) has obtained to finance replacement of package treatment plants and other work on sewer lines that the district claims is being mandated by the Environmental Protection Agency and the Division of Water.
Over two years ago the Oldham Fiscal Court took over the responsibility for several million dollars worth of debt that the sewer district had outstanding in order to improve the credit rating of the sewer district. At the time I told the court that they were just giving the sewer district the opportunity to obtain more loans and go deeper in debt. Well, that has now happened-they have gone deeper in debt and the ratepayers will be each pay an additional $5.39 per month for the next twenty years to service that debt. Frankly, I expect that Oldham County residents have not seen the last of sewer rate increases and additional surcharges.

One magistrate asked a representative of the sewer district how long we could expect to see increases in sewer rates. I subsequently addressed the court and answered his question. Simple, as long as the court continues to vote in favor of the increases. The sewer district only asks for the increases. The court must grant the increases and is therefore responsible for the increases. It is also the responsibility of the court to devise a plan of action to address any action that the EPA and DOW might take if the county decided to challenge those agencies.

The court always blames the EPA and the Division of Water for forcing them to make changes. They often refer to these changes as unfunded mandates. Using this excuse the court says that it is left with no choice but to increase rates. I disagree. I believe that they should challenge the EPA and DOW. It may be difficult for the county to do this alone but it is time for someone in county government to take the lead and form a coalition of counties to challenge the EPA and DOW Perhaps it is easier to just pass another ordinance raising rates than to make that challenge.

To be fair, Magistrate Bob Leslie voted against the increase. All other magistrates and the county judge voted in favor of the increase and surcharge.