Deciding between lesser of evils

Daily News Staff

The Onslow Water and Sewer Authority Board of Directors has three options for its 2008-2009 water rates - all of them higher than the 2007-2008 rates and all of leading to about a 50 percent increase in customers' water bills by 2013.

Executive Director David Walker presented the three fee options to the ONWASA Board of Directors during its Thursday night meeting. The board members, however, did not feel they were ready to vote and recessed the meeting until Tuesday.

The three options Walker presented to the board were:

n Option A - water rates would rise 9 percent each year for 2009, 2010, 2011 and 2012, but would not change in 2013. According to Walker's presentation, for the average customer using 5,800 gallons a month, prices would go from $26.45 a month this year to $28.83 in 2009. By 2013, rates would be $37.34 a month for the average customer.

n Option B - water rates would rise 4.5 percent in 2009, 17.5 percent in 2010, 9 percent in 2011, 9 percent in 2012 and 5 percent in 2013. For the average customer, prices would rise from $26.45 a month this year to $27.64 in 2009. In 2013, their rates would be $40.52.

n Option C - water rates would not be raised in 2009, but would rise 24 percent in 2010, 8 percent in 2011, 8 percent in 2012 and 5 percent in 2013. The average customer, according to Walker's presentation, would still pay $26.45 a month in 2009, but would be up to $32.80 in 2010. In 2013, the rate would be $40.17.

Under all three options, sewer rates would rise 12 percent in 2009, 12 percent in 2010 and 12 percent in 2011. The rates would not rise in 2012 and 2013.

This year, the average customer would pay $42.10 a month for sewer but, if rates change as proposed Thursday, in 2009, that average customer would pay $47.15 a month. In 2013, according to Walker's presentation, the customer would be paying $59.15 a month.

Board member Gregory Hines, Holly Ridge's mayor pro tem, felt that raising fees was unnecessary.

"If we didn't increase our rates this year but decreased our expenditures, wouldn't that be doing the same thing?" he asked the board.

Bond counsel Edward Boyles, who was on hand to answer questions, agreed that decreasing expenditures would offer the same financial impact as raising rates. The goal, instead, was to keep a little "cushion" in order to keep ONWASA's credit rate in good standing, he said.

Hines said that he did not feel he was prepared to vote on the budget because the board had not had a chance to meet and discuss solely the budget. Instead, they held a budget workshop where they discussed other items; and Thursday's discussion of the budget was preceded by 11 items - and two hours - of different topics.

Board member Lionell Midgett, chairman of the Onslow County Board of Commissioners, said he didn't agree with water prices rising more than sewer, explaining that it costs more to deliver sewer to customers than water.

"I'd like to see sewer increase at a more rapid rate," he told the board.

When asked why sewer prices are not changing as much as water, Walker told the board that ONWASA is a "water-based company."

The board will reconvene Tuesday at 7 p.m. at ONWASA, located on Georgetown Road.

Contact Jacksonville/Onslow County reporter Amanda Hickey at ahickey@freedomenc.com or 910-219-8463. Visit www.jdnews.com to comment on this report.