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Stimulus tied to sewer rate hike
HUNTINGTON -- Huntington City Council must adopt a 23 percent sewer rate increase by early June or risk losing an opportunity for federal stimulus dollars, representatives of the Huntington Sanitary Board told council members Tuesday.
The rate hike, which was forwarded to a second reading, is the latest in a series of proposals from the Sanitary Board to generate revenue for projects that must be completed to comply with federal law.
The rate increase would occur over a six-month period. The first phase would raise the average monthly sewer bill of $17.45 (based on 4,500 gallons) to $20.07. The second phase would increase rates to $21.71.
About 85 percent of the city's sewer system, much of which is more than 100 years old, consists of lines that carry both storm water and sewage. The combined lines overflow during heavy rain, which prevents the Sanitary Board's wastewater treatment plant from treating the water. Instead, untreated water flows into streams, rivers and basements and floods city streets.
As a result of the Clean Water Act, the Environmental Protection Agency in the 1990s required communities to implement long-term control plans. In Huntington, that could take at least 30 years to complete and an estimated $785 million in today's dollars. With inflation, that figure could potentially reach $2 billion, Councilman Steve Williams said.
That's one reason why the council needs to approve the rate hike, said Robert Rodecker, an attorney representing the Sanitary Board in the rate case.
Rodecker said Huntington's current sewer rate is so low that it would have difficulty obtaining dollars from the state revolving sewer fund to help pay for sewer projects. Because funding is limited, the state prefers to aid communities that have higher rates, he said.
Furthermore, the city's current rate does not meet the application requirements for federal stimulus funding that the state received for sewer projects earlier this year, Rodecker said. The increase would need to be approved by no later than June 9 to apply for stimulus money, he said.
Councilman Scott Caserta argued the city shouldn't be held financially responsible for the long-term sewer improvements as most are an unfunded federal mandate. He also criticized Gov. Joe Manchin's administration for establishing guidelines that make it difficult for Huntington to get state and federal aid.
"I'm not so sure we shouldn't wrap up this package, put a beautiful bow on it with a nice little resolution on top and lay it on the governor's desk," Caserta said. "This whole big circle comes back to the governor's checkbook."
Revenue from the rate increase would go toward converting the Richmond Street, Oak Street, 22nd Street and Krauts Creek ejector stations into submersible pump stations. Doing so will increase efficiency and decreases sewer overflows, said Loretta Covington, executive director of the Sanitary Board.
The rate increase also would cover costs for a new sewer line that would serve KineticPark, Hal Greer Boulevard and W.Va. 10 and sewer line replacements at 19th Street and 13th Street West.
