Staff Reporter

LAPLACE – Faced with about a $1 million shortfall in the parish’s utility system fund, St. John administration officials are looking at options to increase revenue to get the fund back in the black including the possibility of a water rate hike.

At Tuesday’s council meeting St. John Chief Administrative Officer Pat McTopy said the parish has begun a utility rate study to compare St. John’s water rates with those of neighboring parishes. He said the study could result in rate adjustments that would help get the shortage under control. “We are facing cash flow problems,” McTopy told the council. “We’ve done what we can, but we are just not getting enough additional dollars.”

St. John Public Information Officer Buddy Boe said the deficit is a result of an increase in overtime, delinquent water bills, leaks in the system and the costs surrounding purchase of state-of-the-art water meters that, he said, were designed to help save the parish money.

“The water meters, which were purchased by the previous administration, were supposed to help the parish recover revenue lost through inaccurate readings,” said Boe. “We were promised that they would pay for themselves, but they are not doing what they are supposed to be doing for us.”

Boe said the parish purchased the electronic water meters during former Parish President Nickie Monica’s administration for a cost of about $7 million and installation was completed in October of 2007. He said they are being paid off on a 10-year loan at a rate of about $600,000 a year, but he said there is not enough money going into that account to foot the bill.

“This fund is not supported by a tax,” Boe said. “It works like a business in that the revenue comes from what we collect from water bills. The problem is that we have had a higher increase in customers than consumption.”

Boe said the parish has been successful in bringing down overtime numbers and added that Parish President Bill Hubbard’s system of collecting on delinquent bills, instituted in August of this year, has also made progress, just not enough.

“We were owed about $300,000 in unpaid water bills,” said Boe. “In most cases, people came in and paid off their entire balance. We have recovered a substantial amount and it has certainly helped, but we are still short and that $600,000 bill needs to be paid.”

In addition to not functioning properly, Boe said the meters cost hundreds of dollars more to repair and replace than the old meters. He said the parish’s legal team is looking into the contracts regarding the meters, but no action has been taken as of yet. St. John is the only parish in Southeast Louisiana presently using the meters.

Boe said the utility rate study, which will compare St. John’s rates to rates in St. Charles, St. James, Jefferson and Orleans, is underway and should be complete by the next council meeting, which is scheduled for October 28. He said the study could result in an increase in the base amount charged to all residents of the parish.

“There’s just no other way to pull money,” Boe said.