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Council not raising utility rates

Section: Business

Allen Powell

Despite steadily increasing operating deficits at the city's wastewater-treatment and drinking water plants, the Westwego City Council decided against increasing residents' utility rates Monday when it passed the 2008 city budget.

The council ignored the suggestion of Mayor Robert Billiot that the sewerage rate be increased by 12.5 percent and the drinking water rate be increased by 25 percent when it unanimously approved the budget. Billiot proposed the increases to try to reduce the subsidies the city must provide for the facilities' operations from the city's general fund and other sources.

According to the 2008 budget, Westwego will have to provide a $592,350 subsidy to the drinking water plant and a $245,206 subsidy to the wastewater plant. If the council had passed the rate increases, the subsidies would have been reduced to $544,249 for the drinking water plant and $165,293 for the wastewater plant.

Billiot proposed the increases in his initial budget report to the council, but he said at Monday's meeting that he understood many council members felt they couldn't support those increases, given the upcoming special election.

Billiot was elected to the state House of Representatives last month and will take office in January. Council members Ted Munch, Melvin Guidry, Lisa Valence and John Shaddinger plan to run for mayor in the October special election.

Billiot said he wouldn't push for the rate increases anymore.

"Eventually, it's going to have to come to pass," he said, adding that the city's surplus will only prevent the rate increases for a few more years. "After the election's over with and everybody is settled, (the rate increases) are going to have to happen."

The mayor said several council members also used the subsidies to justify the idea of the city purchasing water and sewerage service from Jefferson Parish instead of operating its own plants, but he disagreed. Billiot argued that tying into the parish's system would not save the city money, would cost city employees their jobs and would eliminate Westwego's ability to quickly restart utility service after disasters.

Councilman Melvin Guidry concurred, noting that the parish and other entities came to Westwego after Hurricane Katrina because it was the only locale with potable water.

Councilmen Larry Warino and John Shaddinger said they are disturbed by the annual increases in the city's subsidies, but said they couldn't support the rate increases because it seemed like a waste of residents' money. Shaddinger said that the city needs to be more efficient in its water production instead of attempting to pass costs along to residents. Warino, who has long been an advocate for tying into the parish's drinking water system, said city officials really need to consider getting Westwego out of the water business.

"It seems like it's endless, endless, endless," Warino said about the subsidies. "We can't just keep pouring money into something that doesn't work."

The 2008 budget projects general fund revenue for the city at about $16.5 million and expenditures at $17.9 million. Consequently, the city is expecting a general fund deficit of $1.4 million in 2008. That deficit is the result of the purchase and repair of equipment in the city's public works and fire departments.

The deficit does not include the subsidies the city will provide to the drinking water and wastewater facilities. The city also had a $1.4 million general fund deficit in 2007. The general fund deficits have forced the city to tap into its savings to balance the budget, as required by the state. Westwego also is expected to spend $5.4 million in state grants on capital improvements, including projects on Sala Avenue and recreation projects.

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