CIMA (Consolidated Infrastructure Management Authority) has released the results of a rate study which was conducted by Water Management Consultants based in Nashville, approved by the board of directors of CIMA for the ratepayers of the city of Auburn.
Auburn has been under an Agreed Order with the Kentucky Division of Water to bring the standards of its sewer operations into compliance or face possible shutdown of the plant. CIMA was created last year as a joint effort of the city councils of Auburn and Russellville to consolidate the two systems, and build a pipeline from Auburn to Russellville to dispose of Auburn's sewage.
Russellville's sewage plant underwent modernization at an expense of over one million dollars in 1998, making it one that meets and exceeds all state and federal standards in effect. The pipeline from Auburn to Russellville will allow Auburn to shut down its sewer plant. The pipeline is now in the design stage, which is also being handled by Water Management.
But in the meantime, the city of Auburn's existing sewer system must be brought up to state and federal standards, and CIMA board has been presented with the unpleasant task of considering a rate increase for Auburn.
The existing problems in Auburn are part of the reason why the current sewer plant is just not doing its job. Also, both the water and sewer lines, as well as the lift stations, are just worn out. Some of the pipes are cracked, and some have just fallen to pieces. There are some lift stations which are useless Those will be totally eliminated and replaced with fewer lift stations to get the job done.
All of this takes money, and while there are very encouraging reports about substantial 'free' grant money being made available to build the pipeline, this just is not the case with the repair work on the existing facility and pipes in the ground.
Russellville just went through this same thing only a few years ago, and the rates went up to pay for it. There are many other cities in Kentucky right now facing this same problem. Water and sewer pipes, and physical plants, last a long, long time. But they just do not last forever, and that is Auburn's problem. Unfortunately, the ratepayers bear the expense of repairing the system.
The new rate schedule for Auburn has been released by CIMA, and there is a 'surcharge' on Auburn's rates. This means that the rates will possibly drop somewhat after June 30, 2003. The board felt that because some of the costs are simply repair work, this could better be paid off quickly with a surcharge, rather than simply an increase in the overall rate forever.
The rates do contain a permanent increase, however, which is as a direct result of the rate study performed by Water Management. These rates just do not come out of the blue. The rate study takes into account all of the costs associated with providing water and sewer service to the residents. It is unknown when the city of Auburn last underwent a professional rate study, if ever.
After we looked at the initial proposed rate, the board felt that there was no way we could increase rates that high for any ratepayer. In the meantime, Auburn is under a tap-on ban issued by the state. That means that an extremely limited number of homes or businesses can tap onto Auburn's existing sewer lines until the tap-on ban is lifted.
To get this tap-on ban lifted, CIMA is in the process of finding the leaks in Auburn's system, and repairing them, and to find out how to keep rainfall out of the sewer system. The repair of this problem, known as "inflow and infiltration," is crucial to proper operation of a water and sewer system.
To determine how to pay for these repairs and to provide for ongoing maintenance, which has never even been done to any successful degree in Auburn, the board has had a rate study performed. Not only does the rate study examine the cost of undertaking the initial I&I work, but also this has to be an ongoing process for Auburn.
The board is more than aware that many ratepayers in Auburn live on a fixed income, so we had no choice than to examine all costs. Our biggest expense is payroll, so streamlining operations was examined by the board in great detail.
The board has voted to lay off seven CIMA employees, and it is unknown at this time if these layoffs will be permanent. In addition, a purchasing freeze has been put into effect.
This has been hard, very hard. The board is charged with the responsibility of operating CIMA as a business, and sometimes business has to cut costs to keep prices down. When we were faced with either almost doubling the rates to the ratepayers in Auburn, or to layoff seven CIMA employees, then there really was little choice. The unpaid, volunteer board operates on behalf of the ratepayers, and we just had no choice.
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