Posted on: Tuesday, March 12, 2002

Tapping of sewer fund criticized

By Robbie Dingeman
Advertiser City Hall Writer

City Council members yesterday questioned a Harris administration proposal to use $60 million from the sewer fund to help balance the budget for the coming year.

Council members said it seems shortsighted to take money from the fund — intended to operate, maintain and build improvements to the sewer system — when the city is facing $1 billion in needed sewer improvements over the next 20 years.

A Council committee yesterday began public scrutiny of the budget proposed by Mayor Jeremy Harris.

Budget chairwoman Ann Kobayashi said she finds it appalling that the budget relies on short-term infusions of money from land sales, money transfers and debt restructuring.

"I'm really upset at how the budget is being balanced," Kobayashi said. She said the committee will review the budget "page by page" to see if the city can pare down the $60 million transfer, and will call on community members to help come up with creative solutions to balance the budget.

Councilman Romy Cachola noted that the city transferred $41 million out of the sewer fund last year and $60 million this year. He asked if the $48 million that would be left in the fund would handle future improvements without the need for increasing sewer fees.

Cachola said that will leave Council members in the future with the choice of raising sewer fees or issuing more government bonds, which increases long-term debt.

Councilman John Henry Felix said he was alarmed by the administration's use of debt restructuring to lower payments now while extending the term of the loans.

"Do we have the political courage to do the right thing and balance the books in a traditional manner?" he said. "We're cooking the books, so to speak."

Council chairman John DeSoto said the sewer fees will rise and it will happen after he and five of the other Council members have left office. "It's going to be very uncomfortable and very unpopular."