Politics

Leaders signal greater cooperation on water issues

Commissioners Grady Hawkins and Larry Young raised questions about city water rates.

By Bill Moss, Published: September 20, 2014

Henderson County commissioners aren't pleased that non-city residents pay 60 percent more for water than Hendersonville residents. Whether they can do anything about it is in doubt.

Hendersonville City Manager John Connet and city Utilities Director Lee Smith made a trip to the Board of Commissioners meeting to update the county leaders on the system. It was something of a diplomatic mission in a political environment that has thawed relationships between the two governing boards, led to an unprecedented agreement to build a large health sciences center on the Pardee Hospital campus and created a shared commitment to economic development.
Connet opened the presentation by saying the city wanted "to promote good economic development and a safe sound solid water system."
After Smith explained the nuts and bolts of the utilities system, Commissioner Grady Hawkins pounced.
"Looking at your 2015 budget," Hawkins said, "I guess about $8 million of your $12 million comes from the county, which brings me to the next question — why county residents have to pay almost double. Their rate is $4.33 a thousand and in the city it's $2.72. I don't see that much of disparity in cost just for the lines that's already been out there for a long time. You've got 28 percent of the water you don't know where it goes anyway."
"The majority of our system is in the county," Smith said, "and it's spread out mileage-wise a lot more. So there is more cost to maintaining the pump stations, maintaining the lines."
About 70 percent of the city's customers are outside the city limits. The lines outside the city have 37 customers per mile, versus 70 in the city.
"One of the reasons (for the higher rate) is because we actually do have a greater expense outside the corporate limits than inside because your lines are typically bigger, they run greater distance and you have less customer per mile," Smith said, "and also the majority of our capital improvement projects are actually outside the corporate limits."

SUBHED
'Regional authority ... would be fine'

A drought might lead to rationing "out in the county to 72 percent of the users but we have no representation on the city's water supply," he said.
"It doesn't matter where you're located," Smith responded. "We ration based on the demand of the system and based on our conservation plan."
Connet stepped with an assist, assuring the county board that the city would notify the county of any rationing.
"That's one reason we're here is to have communication with the Board of Commissioners," Connet said. "We're here to communicate with you. The whole point of this presentation with you and the other municipalities is to let you know we want to open the doors of communication and let you know what the system is doing."
Commissioner Michael Edney thanked the city officials for attending the meeting, calling it "one more step for us to keep working together."
"And if we can do a regional county-city authority, that would be fine," he added. "We can work that out if y'all want to."
Connet didn't respond.

SUBHED
Rate difference 'bears scrutiny'

Hawkins said in an interview that he'd still like to see the city evaluate the rates.
"I think it's something they might want to address," he said. "Obviously, the disparity bears some scrutiny inasmuch as it's almost double."
"The number of customers per mile line — that certainly reflects on the revenue, but a mile worth of line is a mile worth of line no matter how many taps you got on it. One of the things that they've got is unaccounted water; it's almost 28 percent of their water. Everybody that's on the waterline pays for that somewhere. I would think that an aggressive project to find out were the missing water is would be beneficial to everyone."
County Manager Steve Wyatt said the commissioners are limited in what they can do about water rates.
The city is "the water and sewer provider for the vast majority of the county, which is not unusual," Wyatt said.
Neither is a rate structure under which cities charge more — often substantially more — for non-city users. "I will say to you, and I told the board, that is the standard practice, and frankly it's not unusual for that to be double," he said.
A prevailing wind of cooperation between the city and county does not necessarily portend major change in the water delivery in Henderson County or make a joint water authority practical. What businesses and industry recruiters are likely to see is greater agility by the city and a willingness by the city to share information in advance on expansion plans, capacity upgrades, rate changes and impact fees.
"I don't know that the board has had a comprehensive sit-down discussion about it," Wyatt said. "What I have said is the city chose to be in the water and sewer and business. The county did not choose to. Is it a monopoly? Yeah, pretty much."
"Everybody would like for it to be a lot cheaper but the city has to run it as business enterprise," he added. "It's like solid waste. The city makes those decisions and I respect the city's decision."
If commissioners wanted to pursue a partnership in water and sewer, they would need to get out their checkbook.
"What I've said to a commissioner or two is unless you're willing to bring millions of dollars to the table to invest I don't know what we have to talk about," he said. "If you get into partnering with the city, I think they would rightfully expect you'd have to buy in."
The Sept. 3 meeting raised the profile of commissioners' concerns over non-city rates and impact fees and annexation.
"Is there angst about the differential rate? You saw it at the meeting. There is," he said. As for a push for a consolidated authority, "It's not on my radar screen."
Hawkins agreed that the presentation by Connet and Smith clearly signals another step toward cooperation between the city and county.
"I really look forward to working with the city of Hendersonville on water issues because they are the water and sewer, quote, monopoly, in the county," Hawkins said. "So it would be advantageous for everybody to see how we can mutually support each other.
"The joint venture on the health sciences building was kind of the icebreaker" for cooperation. It was a major project requiring financial and political capital of both bodies. "It could be a very productive relationship and I think it will."