Water board may delay rate hike for two years

By Walter Wright
Advertiser Staff Writer

The manager of the Honolulu Board of Water Supply yesterday said it may be able to hold off a rate increase for two years, instead of the one-year delay approved by the board yesterday.

The board again voted to keep water rates the same. The last increase was in 1995.

Board chairman Eddie Flores Jr. said that in light of the current economic environment in Honolulu, delaying a rate increase is "the most prudent course to follow."

The board also delayed increases in hook-up fees.

The board approved a $167 million budget for the fiscal year beginning July 1 that is 24 percent less than this year's budget.

Board manager Cliff Jamile said the agency will spend $53.2 million less by cutting 24 unfilled staff positions to bring the work force down to 604, by reducing consulting services and by paying less for electricity because fuel costs less.

Flores said the agency can continue service at present levels.

O'ahu residents pay $1.77 per 1,000 gallons up to 13,000 gallons; $2.12 for 13,001 to 30,000 gallons; and $3.18 for water use that exceeds 30,000 gallons.

Jamile said it may yet be possible to defer an increase for two years.

This is despite a $1.1 million increase in pay for employees under a union labor contract, and more than $500,000 for guards for new security since the terrorist attacks of Sept. 11.

Jamile said improvements in physical security should reduce the need for guards in the future.

The board also will spend $300,000 on a "vulnerability" study.

The U.S. Environmental Protection Agency, requiring all water utilities with 100,000 customers or more to do such studies, may give Honolulu $230,000 in grants to help pay costs, Jamile said.

Reach Walter Wright at wwright@honoluluadvertiser.com or 525-8054.