Drought Surcharge in Charlotte, North Carolina: Conserve Water, Still Pay More at the Water Pump; Heavy Users Vs. “Lifeline” Users (MSNBC)

Feb.12, 2009 in Water Rates

(Feb. 10, 2009, MSNBC)

CHARLOTTE, N.C. — It is because Mecklenburg County residents conserved water during the area’s most decent drought that they may pay more for it if they find themselves in the same situation in the future.Charlotte’s city council heard a recommendation Monday night from Charlotte Mecklenburg Utilities for a drought surcharge—a fee assessed in the case of a future drought.Even after a 15 percent rate hike in April 2008, water revenues ended up down $5 million at CMU. City leaders want to prevent that kind of sudden and significant increase in the future, and CMU director Doug Bean says this surcharge may do that.He presented what he called an “example” during the council dinner meeting Monday night. The proposal suggests assessing the surcharge first to the heaviest water users if and when the city enters Stage 2 water restrictions, which mean watering is limited to 2 days a week. Those heavy users use 25 ccfs or more per month.Medium users—16-25 ccfs—would be assessed the fee at Stage 3 restrictions. Residential users mostly fall in the 3^rdcategory—8-16 ccfs–and would be assessed at Stage 4 water restrictions. In the example shown, those bills would go from $45.60 to $51.22. Light users are called “lifeline users” by CMU and would not be assessed.The council has asked a special committee to come up with a formal proposal. It will likely be several months before it is presented for a vote.CMU director Doug Bean also spoke about changing the fund balance CMU uses. When questioned, he told Mayor Pro Tem Susan Burgess that that idea could affect rate hikes in the future. Bean also communicated a recommendation to change the amount of cash CMU keeps in reserves for special projects. Bean told the council that the change would give CMU more flexibility to stop capital improvement projects if it finds itself in a shortfall.Many citizens question any hike after the 15 percent increase last year. Councilman Anthony Foxx told Bean he would like to see more information on the idea of no rate hike this year, given the tough economic times.Bean says the drought forecast is good. Charlotte is currently under Stage 2 restrictions. Bean says CMU hopes to lift them entirely in the next month.

(Original Article Here)

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