City of VP proposes major utilities rate increase

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Ville Platte Utilities customers are facing rate increases from 38 to 60 percent on their monthly bills, if a proposed ordinance is approved by the City Council at an upcoming special meeting next Tuesday, May 28.
The Council will hold a public hearing on the matter at 4:45 p.m., followed immediately by the special meeting at 5 p.m.
For those who wish to inspect a copy of the ordinance may do so by visiting City Hall and requesting to see the document. Residents and business owners are encouraged to bring recent bills to the public hearing to get an individual estimate of how much their rates would increase.
If the ordinance is passed, the new rates would begin in June, and customers would see the increase in their July statements. Additionally, the rates would automatically increase two percent every year unless the council takes action to change it.
According to John Mayeaux, a municipal financial advisor, the reason for the huge gas, water, and sewer increases is because for nearly 20 years, the city neglected to raise rates slowly to keep up with inflation.
Mayeaux said that rates should increase at least to keep up with inflation, which is about two percent per year. But, it has been 19 years since Ville Platte has had a rate increase.
“This ordinance is trying to catch up to where rates would be if the increases had been made,” Mayeaux explained. “Right now, your system does not cover annual operating expenses and depreciation.”
There were three important consequences that Mayeaux noted would happen if the rates weren’t increased. First of all, the city would not be able to issue a series of bonds to be able to pay for current and planned water system improvements.
Additionally, the city is under covenant agreement with banks and loan agencies to maintain a certain fiscal sustainability standard to cover previously issued bonds and loans. If the city cannot meet those standards, the State of Louisiana could force the rate increase.
Lastly, the utility system is not generating the revenue that is needed to provide money to other budget areas, like the general fund or the court system. These other budget areas depend on the utilities system providing money to pay for more city workers and other projects.
Councilman Bryant Riggs was incredulous over the fact that the rate increases weren’t done in a piecemeal fashion over the last 20 years, and he was reluctant to call for the rate increases.
“So, this is something that should have been done a little bit at a time, every year?” Riggs asked Mayeaux. “Instead we’re going to stick it to people all at one time?”
Riggs wanted to know whether a 38 percent increase at one time was necessary; or whether smaller increases could be built up over time.
“We can’t ask people to pay more money,” Riggs said, “unless we can tell them that they’ll also see better service from the city.”
Mayor Jennifer Vidrine tried to allay his concerns.
“At the present rate structure,” Vidrine said, “the city doesn’t sustain itself. But the upside is that people will see many, many improvements.
“It’s not just a rate increase without getting something back,” she continued. “The citizens will see a huge return on their money.”
Vidrine indicated that her new budget is already planned according to the rate increases. Earlier in the meeting, she indicated that the new budget would have money for new surveillance cameras, new street lights, and a new system for cleaning out the ditches and culverts.
Mike Perron, councilman for District C, regretfully said that he didn’t see an alternative.
“I hate to do it,” Perron shrugged, “but if we don’t, the city goes broke. It’s hard to ask people to pay more, but we’ve got to do it.”
Mayeaux explained that not everyone would see the same rate increase. It depends on several factors, like whether a customer has a residential or commercial account. Other factors include whether the customer uses all three utilities or is outside the city limits.
Mayeaux gave two examples for residential rate increases.
“Looking at the average use for a residential family of four,” Mayeaux said, “for water, sewer, and gas, the rates would increase $45 per month.
“A single person, or an elderly person, who uses less of the utilities, would see about a $19 per month increase,” he added.
When asked about how much of an increase businesses might see, Mayeaux hesitated.
“Residential accounts are easy to estimate,” he said, “but commercial accounts vary widely depending on the nature of their businesses.”
However, Mayeaux did acknowledge that “generally speaking” the increase for businesses would be in the “50-60 percent range.” He suggested that people who want a more accurate assessment of their particular rate increase should attend the public hearing next Tuesday, bringing a copy of their recent utilities bill.
There will also be a second public hearing about a different proposed ordinance next Tuesday. This proposed ordinance would allow the city to assess a 25 percent collection fee to delinquent city accounts. The public hearing on this proposal will be at 4:30 p.m.
The Council also heard from Alexis Primeaux and Clyde Irvin, representatives from Cenla Environmental Science, who told it that Ville Platte was not in compliance with an ordinance from 2014 requiring it to enforce a cross connection control plan.
Cross connection control is a system to ensure that non-potable water does not backflow into the potable water system. According to the ordinance, the city must insure that qualified residences and businesses have installed backflow prevention; and it must maintain yearly inspections on the devices.
The Louisiana Department of Health has set a deadline of Dec. 31 for the city to certify all residences and businesses that qualify for needing backflow prevention have it in place.
Primeaux said that this mostly will affect businesses. Two examples of residential needs for prevention include sprinkler systems and swimming pools.
However, in the case of pools, she said that as long at the hose used to fill the pool does not remain submerged in the water, but has an air gap between the hose and the water, then a special valve is not needed.
City Engineer Ronnie Landreneau also noted that when the city installed the new meters, it included backflow prevention valves. He said that most businesses needing the prevention devices automatically include the special valves in their building plans.
“A lot of this has already been initiated,” Landreneau said. “We just need to show the proof to the state.”
Consequently, the city will be mailing out surveys to all utility accounts to help residents and businesses determine if they qualify for the backflow prevention requirement.
Once the surveys are tabulated, the city will then have to record the installation of the backflow prevention devices to the state.
In other business, Kailey Thomas complained about the way the police department is handling the investigation of the battery of her son. She was joined in the complaint by Wendy Johnson, who is the boy’s aunt.
Two months ago, Johnson said, the boy (who wasn’t identified by name) was “jumped by four people” and “beaten unconscious”. Someone called 911 and he was brought to the hospital.
The two women said that the initial police report had a witness who said she could identify the assailants. However, the current investigation says that the unidentified witness has recanted her original statement, refusing to go on record.
Police Chief Neil Lartigue said that the police “don’t have probable cause. The witness is refusing to cooperate with the police.”
The two ladies were incredulous, noting that they spoke with the witness themselves. They said that the witness told them that, although she doesn’t know the names of the assailants, she could identify them.
“It’s like we’re doing the investigating ourselves,” Johnson said. “I might not have a lot of education, but even I know that the police are supposed to be doing that job.”
In the end, the two ladies agreed to ask the witness to call Lartigue directly so that the case could be resolved.
Pastor Norman Armstrong and Michael Nelson asked the council’s help in the Woods section of town. They identified three areas of concern: litter and trash in the ditches, broken street lights, and the need for security cameras, especially along Edward Knotoe Thomas Street.
The two men said that they have helped form a community organization that would try to address some of these and other issues, but that they need for the city to do its part.
“This needs to be addressed,” Armstrong said. “We’re catching some hell. Help us out, and do it soon.”
Vidrine noted that their concerns were already addressed in the new budget (which depends on the passage of the utilities rate increase).
Councilman Lionel Anderson also said that he has started Operation C.O.S.T. to help clean up trash. C.O.S.T. stands for Clean Our Streets Together.