South Bend raises sewer rates
By LINDA SKALSKI
News Writer
The South Bend City Council recently passed an 80 percent price raise in the cost of sewer utility, a cost that directly affects the Notre Dame community.
"An increase in rates is necessary for the Wastewater Utility to continue to serve as a community asset for environmental stewardship and economic development," wrote Mayor Stephen Luecke in a statement to the community.
The proposal affected the policy for determining customer rates. Instead of being charged on a flat rate system, customers pay for what they use.
"This system is fairer to our residents," South Bend City Council member John Aranowski said. "Residents who use less will pay less."
Notre Dame, the largest user of the city's sewer service, and other major industrial users will shoulder most of the economic burden. University administrators have a limited number of choices as to where the money will come from but have as of yet to formulate a plan, said Matthew Cullinan, executive assistant to the president.
However, Cullinan is confident that the added expense will not significantly affect students.
"It's not like we have money lying around, but spreading the costs over all students does not warrant a huge increase," Cullinan said.
Notre Dame administrators have been working hard with the city to moderate the increase. A surcharge of 50 percent was originally placed on outside users, which Notre Dame is considered, but the added expense was dropped in the final draft of the bill. Council members felt the surcharge was astronomical and unfair, Aranowski said.
"At first the increase was going to be tripled," Cullinan said. "Eighty percent is a ton, but it's not tripled."
While Notre Dame has been cooperating with council members, several large users filed a lawsuit against the city. According to the ordinance submitted "the new rate scheme is fundamentally flawed and results in unjust, unreasonable, and discriminatory rates for users of the city's municipal sewage works."
Holy Cross Associates, provider of Saint Mary's sewer utility, is among those filing the lawsuit. According to the ordinance submitted the prosecuting companies feel they should be given discounts for volume because as large users they do not impose as much of a cost as they are allotted in the new system.
The city strongly disagrees, and is confident that the new sewer rates are fair, especially for low-income people who struggle to meet monthly bills, said Aladean DeRose, chief assistant city attorney.
"The goal is to maintain rates as equitable as possible for all users," DeRose said. "For the past few years residents have been paying more and subsidizing larger users."
Notre Dame did not participate in the lawsuit for a number of reasons, including the simple fact that the city has not adjusted the sewer service rate in 14 years, and administrators feel a rate increase is justified, according to Cullinan.
"We decided after long conversations with the city and looking at broader issues that [legal action] probably was not the right course for us," said Cullinan. "Businesses can close down, pick up and move out, but we cannot. We want to stay where we are and keep a strong relationship with the city."
An advisory committee will evaluate the current sewer rate adjustment in two years, to study fair ways to handle sewer rates in the future. The advisory committee includes members from Notre Dame, the business community, Chamber of Commerce and South Bend residents. The committee will study a fair way to handle sewer rates in the future.
All News Stories for Friday, January 31, 2003
