The way the Albany City Council turned down a request for water service in North Albany this week, you’d think that the city water business was swimming in money and needed to make no more sales.
In fact, though, the water fund needs every dollar it can earn. The council has held up on a rate increase this year, but next year it likely won’t be able to do so again.
A couple living outside the city limits in North Albany, who have had water service from what is now the city system and its predecessors for 25 years, wanted to split their five-acre property and build a smaller house to move into for retirement. They asked for a second hookup.
A city policy says service outside the city limits can be granted only to parcels existing in 1991. They’ve made exceptions since then, but not often.
In this case the council was split. Three members and the mayor, all running for re-election this year, said no, rules are rules and so forth. Rules may be rules, but they ought to be broken or changed when they don’t make sense.
The city water system is $30 million in debt for the construction of a state-of-the-art treatment plant off the Santiam River. Water rates are high and, after the current pause, will have to rise higher to meet the debt and pay for upgrading the distribution system.
During budget and rate discussions, council members have said the system needs more customers. But some of the no voters on the council cited the fear of “sprawl” in North Albany if more water service was allowed. And in fact many Oregon cities don’t extend services outside for land-use reasons. In this case, though, even if others did the same as these applicants, dividing a five-acre lot in two is not sprawl.
Now, the money: A water hookup costs about $5,000, more if there’s an extra connection charge. Because of surcharges and in-lieu-of bond payments, customers outside the city pay extra for the water they buy.
As a business, the city water system can’t afford to turn customers away. When it does, the existing customers must pay proportionately more. (hh)
