Niles utilities panel proposes 1st sewer-rate rise in 18 years

By Jordan Cohen

The rate increases would continue through 2011.

NILES — The city has not imposed a sewer rate increase in 18 years. That’s about to change.

Council’s utilities committee agreed Wednesday that an increase is necessary after learning that design and construction of a new waste treatment plant could cost $17.5 million.

The current facility is 20 years old, which is considered the maximum plant lifespan, according to the U.S. Environmental Protection Agency.

Randy Fabrizio, waste treatment plant superintendent, presented a financing plan, which would include increases starting this year and continuing through 2011.

“Even with these increases, there is a good possibility that we may not be able to cover all the costs and would have to look at [obtaining] other funds,” Fabrizio said.

Initially, Fabrizio proposed average rate increases of $2 per month for this year and $2.30 per month in 2009, with lesser increases the following two years.

After Councilman Stephen Papalas and Mayor Ralph Infante questioned whether the increases were adequate during the final two years, however, the committee tentatively agreed on monthly increases of $3.18 in 2010 and $3.30 in 2011.

“We have to address this issue now rather than later,” Papalas said.

Fabrizio said the increases are based on a standard residential usage of 7,500 gallons a month. He said plant construction costs can only be estimated until a design study, costing $150,000, is completed. The study has not yet been authorized.

The superintendent warned that the city, which is still paying $640,000 a year for its current treatment plant, will not pay off the debt until 2013. He said that for the first few years, the city will have to make simultaneous payments on both facilities with an estimated annual bill of $1.2 million.

“We may have to take a real big hit until we pay off the [current plant] debt,” Fabrizio said.

The utilities committee has scheduled another meeting on the proposed increases in two weeks.

In the meantime, the committee plans to look at funding for long-needed interceptor sewer repairs, which will cost $2 million.

Those funds are getting tighter, however. Treasurer Robert Swauger told the committee that this year’s income tax collection will decrease by $225,000 because of cutbacks at General Motors, General Electric, and Delphi, and the closing of the Amweld plant.