City water authority considering rate hike
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Because of capital needs, the Pittsburgh Water and Sewer Authority is considering its second rate increase in as many years, an issue likely to be discussed at a board meeting today.
A 5 percent price increase has been discussed, but that's not a firm figure, state Rep. and board chairman Dan Deasy, D-Westwood said, stressing that the board will keep any increase as low as possible.
Mr. Deasy said a 5 percent increase might add $2 to the average customer's monthly bill, but he wasn't immediately able to say how much the bump would generate for the authority overall.
He said the authority, which has a budget of $156 million this year, needs new revenue to upgrade infrastructure and buy equipment.
"Obviously, we have some needs," Mr. Deasy said. "We understand, too, in a tough economy, people are hurting. It's a tough balance."
The authority has battled controversy all year.
Its executive director abruptly resigned last December amid questions about his ties to a vendor providing a line warranty program to customers. A judge later ruled the program illegal, the vendor filed for bankruptcy and unpaid contractors have placed mechanics liens on customers' homes.
In addition, an Aug. 19 flash flood on Washington Boulevard killed four people and raised questions about the authority's water-management practices.
Last year, the authority approved a 7.7 percent rate increase. It also approved a 2 percent increase in a fee that generates money for infrastructure improvements.
In all, the authority said at the time, the increases boosted the average customer's monthly bill from $42.97 to $47.12. The average customer uses 4,500 gallons of water each month.
The authority implemented the infrastructure fee in 2010. It also increased consumption rates in 2007. After last year's increases, the board said it would try to avoid future hikes for two years.
Although the board meets today, Mr. Deasy said no budget or rate increase will be on the agenda. "I don't think it's a finished product yet," he said, predicting the board will hold a special meeting on those issues next week.
The delay infuriated city Councilman Patrick Dowd, an authority board member who said the budget already should be finalized. Last month, Mr. Dowd said the board was "pathetic" because it hadn't replaced the executive director or moved other important issues forward.
In an email to board members Thursday, Mr. Dowd said delaying a vote on the budget was another "failure of this board to govern."
Earlier in the day, Mr. Deasy had sent board members an email saying no vote could be held because staff members still were working on the budget.
"They are working to address infrastructure needs as well as seeking efficiencies within our operations. ... I would like everyone to have adequate time to review the budget and be comfortable making a vote."
Replied Mr. Dowd, "I am ashamed to be associated with a board that will take no action [Friday] on either a 2012 budget or starting a search for a new executive director."
He said he believed Mr. Deasy had made up his mind on budget matters and now is dragging his feet. Mr. Dowd wouldn't discuss his position on a possible rate increase.
"Since Friday, you have changed your mind and delayed getting another agreement from board members," said Mr. Dowd, who's likely to raise his complaints at today's meeting.
First Published December 9, 2011 12:00 am
