The city Board of Estimates deferred voting Wednesday on a proposed 9 percent increase in the city?s water rate, as some members expressed concerns the increase was too high.
They also cited an auditor?s report of a growing surplus in the water fund.
“What is at issue is how high the increase should be,” said Shaun Ademac, spokesman for City Council President Stephanie Rawlings-Blake. “Since the auditor?s concerns were only brought to the attention of the Board of Estimates this week, the decision was made to defer the vote.”
“Since 1998, water rates have increased 173 percent, so I?m worried about low-income residents? and senior citizens? ability to pay,” Comptroller Joan Pratt said.
The proposed rate increases have implications for residents outside the city, too, as the city provides water to Anne Arundel, Baltimore, Carroll and Howard counties.
The municipal water service must maintain a surplus by law. Rate increases are proposed by an audit committee working with the Department of Public Works, the city agency responsible for managing water and sewer systems.
A report shown to the board before the vote showed the water fund with a $32 million surplus, $8 million more than 2007 projections, Pratt said.
City Councilman Jack Young said some of the surplus should be used to give ratepayers a break.
“With other utility bills going up, we need to do whatever we can to lessen the burden on ratepayers,” he said.
The board will take up the rate increase again at its April 18 meeting.
