Published: Nov 04, 2009 02:00 AM
Modified: Nov 02, 2009 03:45 PM
Raleigh officials are asking too much of the town of Wendell when they make returning water capacity a requirement of extending the town's debt service.
The water capacity is key to the town's future growth. It is essentially a promise by the city of Raleigh to provide a certain amount of water to Wendell water customers at a certain rate, which was set at the time of the merger.
The town has not made use of all the water promised by the city. A sizeable chunk of water capacity was purchased to ensure the viability of future growth.
Raleigh officials have said the town could buy the water capacity back at some point in the future if the need arises, but the town would have to purchase the water at higher rates - perhaps double what the town is now required to pay.
The town has already cut several capital projects to reduce the amount of money it owes the city. Last week, commissioners heard a proposal from town staff to eliminate a slew of other projects.
Under the terms of the original merger agreement, the city of Raleigh agreed to extend any favorable extensions offered to other towns to the town of Wendell.
Other towns are considering a request, but no formal request has yet been approved by the city of Raleigh.
The folks working at the City of Raleigh's Public Utilities Department, or CORPUD, need to consider how making such a demand on the smaller towns will impact the system's future growth, and in turn, their own financial viability.
Instead, the city is looking for a way to grab more than they are due.
That's a short term fix to a long-term problem. Raleigh is worried about the increasing costs it faces in providing water and sewer service to its residents.
For years, Raleigh water customers enjoyed exorbitantly low rates. Now that the city sees the need to expand its service capabilities, it has realized a budget crunch of its own. Solving that problem on the backs or water customers in outlying towns like Wendell, Knightdale and Zebulon is an unreasonable plan.
The mergers between Raleigh and the six smaller municipalities have proven to be a good deal for nobody but Raleigh. It's unfortunate that the mergers were approved, but it's the hand we've been dealt.
Wendell commissioners should insist that Raleigh negotiate in good faith and disregard any additional demands Raleigh makes.
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