During last week’s meeting of the Pima County Board of Supervisors, Supervisor Miller questioned the validity of the rate increase requested on August 17th, 2015 by County officials. In in a shocking moment of honesty, Regional Wastewater Reclamation Director Jackson Jenkins stated, “Fortunately you guys did not approve that rate increase.”
Ever since the County Administrator Chuck Huckelberry insisted on building a plant based on untested science, the County has been on shaky ground and raking up costs. Miller revealed on the James T. Harris radio show that the County recently spent $100,000 on a consultant to determine what fees should be charged to area residents.
“Three times they came before the board asking for rate increases, and each time I fought them,” said Miller, who noted that her fellow supervisors supported the increases until she prevailed. “If they had been approved those rates, people would have been paying more than they should. Thank God they didn’t raise those rates,” said Miller.
It is the fact that for all of 2014 and early 2015 Jenkins came before the Board requesting a rate increase. Each time, Miller questioned the need. As noted in the minutes, the decisions are not based on economics so much as they are based on politics. Regional Wastewater Reclamation Advisory Committee (RWRAC), August 20, 2015 meeting minutes read in part:
The Department should defer approaching the BOS for a rate increase until FY 2017/2018. Mr. Burke added, in FY 2010/11, the BOS adopted four automatic 10% rate increases. In that motion, the BOS said any available cash should be used to either pay down debt or reduce rates. The longer a rate increase is deferred, the larger the amount of a rate increase is needed for the subsequent years. His recommendation would be to introduce rate increases that are lower over time than to wait and do a larger increase.
There was much discussion, comments, and questions expressed by the RWRAC members following Mr. Burke’s update. Committee members expressed their frustrations with having received new information just prior to being asked to vote on a recommendation to the BOS for a proposed rate increase. The Committee members expressed concerns about being asked to make decisions and recommendations with insufficient information provided to them.
Many Committee members voiced that their credibility looks bad due to these circumstances.
Ms. Smith stated, every single conversation at the RWRAC and Sub-Committee meetings for the past three years has been the sky will fall if the DSR fell below 1.3. The CIP Sub-Committee has spent many hours over the past few months and gone through every line item on the CIP budget to look at ways to cut spending. Now on the eve of the RWRAC meeting, everything is okay. This Committee has worked in good faith and now everything we’ve been told went out the window. Mr. Burke acknowledged Ms. Smith’s frustration and responded by saying, the focus is on maintaining good financial debt ratios and good financial standing for debt that is issued.
Bill Katzel said, he was put on this Committee to monitor rate increases on behalf of constituents. He is a bit disillusioned that rates have to be manipulated. The constituents are concerned that they have to pay more even when they conserve. He still wants to represent constituents and have their confidence. Mr. Jenkins responded, it does not look like a rate increase will be needed for FY 2016/17. It has been four consecutive years the Department has operated without a rate increase, since July 2013. The Department is losing user fee revenue from decreasing flow volumes.
Mr. Taylor, expressed it’s important for this Committee to understand what changed and why. Mr. Burke replied this changed in the last couple of weeks. Mr. Dommer brought to his and Mr. Huckelberry’s attention the push back on rates. Additionally, it is difficult to raise rates during an election year. [emphasis added] The question becomes what happens if no rate increase? Mr. Burke’s personal opinion is that a small increase now is better and should be done, but it doesn’t have to be done. That is what this Committee is supposed to decide and recommend to the BOS. [Read minutes here]
Eventually, Bronson and Carroll made the astute political decision and joined Miller in opposition.
It is the chaos and total lack of control that appears to be going on under the direction of Director Jenkins despite the fact that the old director still there under contract and Richard Miranda was brought in earlier this year.