Falls Church Water Rates Could Go Up Aug. 1

Fairfax County residents who receive water from the same company adamantly opposed a proposed ordinance to increase water service rates by eight percent this years.

City of Falls Church City Council approved 6-0 the first reading of an ordinance to amend the water service rates.  Final vote on the ordinance is scheduled for July 11.

Tracy Mowher of the Municipal & Financial Services Group (MSFG) presented the results of her firm’s evaluation of the Falls Church water service rates, claiming that the rates have not increased since 2005 and during that six year period the operating and capital costs associated with the city’s water system have increased.

“Our proposed financial plan will establish a reasonable water fund balance over several years,” said Mowher, as she presented MSFG’s five-year plan regarding water rate increases. “It’s necessary as rates have not been increased over the past several years.”

For the average household, the quarterly (three-month) water bill would increase between $2 and $7, depending on consumption, Barbara Gordon, city spokeswoman said in an email.  The proposal would increase water service rates by 8 percent, she said.  The current water commodity charge is $3.03 per 1,000 gallons.  The proposed rate would increase the commodity charge to $3.27 per 1,000 gallons in fiscal year 2012.

In protest, citizens pointed to flaws in MSFG’s report and also claimed that the rate increases result in financial gains for the city and significantly affect the many county residents living outside of city limits while benefiting those who live in the city.

On June 14, 2011 the Fairfax County Water Authority sent a letter to Mayor Nader Baroukh claiming that the MSFG study was flawed and would place Falls Church on “a trajectory to charge water rates that are more than 60 percent higher than the rates Fairfax Water charges to its own customers in Fairfax County. The primary reason for that cost disparity is that Fairfax Water has significantly larger economies of scale that enable it to supply water at the lowest unit cost in the region.”

“I think it is completely implausible that a city system that was so profitable for so many years and was so profitable so recently, all of a sudden needs these dramatic rate increases to break even,” said Dennis Hennigan.

Applause erupted from one member in the crowd after an elderly gentleman living in the Fairfax County portion of Falls Church staunchly opposed the rate increases and called for the council to provide more transparency and awareness of the rate increases to it’s constituents.

A total of seven Falls Church citizens presented their disgruntled analysis of the rate increases and the apparently flawed MSFG study.

“For many years Falls Church has illegally overcharged its’ customers, including the 92 percent of its’ customers who reside in Fairfax County,” said Dennis Hennigan, who based his statements on a January 2010 ruling by Fairfax County Judge Terrence Ney that the city cannot charge water rates in excess of expenses. “The judge held that as to those residents in Fairfax County, this was in effect taxation without representation. We don’t have the power to hold you folks accountable for these exorbitant rates.”

Ney’s decision was upheld by the Virginia Supreme Court.

Since December, several customers, mostly in Fairfax County, have complained that their water bills from the City of Falls Church were overcharged. Customers allege that they were overcharged between fiscal years 2007 through 2009. Alexandria-based lawyer John Charles Bennison filed a lawsuit on behalf of 21 water utility customers who alleged they were overcharged for services. According to the water utility’s website, the company supplies water to 35,000 commercial and residential customers within the City of Falls Church and Fairfax County. In May, bills but to let things play out in court.

Despite the protests though, the council moved to approve the rate increases on the first reading and have scheduled a second reading and public hearing for July 11th. If the ordinance is approved, the rate increases would go into effect beginning August 1st.

After hearing the disapproval of citizens, Vice Mayor Dave Snyder responded candidly prior to closing the discussion of the rate increases amongst the council.

“It’s always been the priority of this council to assure that the water that we provide to our customers is as safe and reliable as humanly possible,” said Snyder. “I will not be swayed by arguments directed to keeping our rates artificially low so that the quality of our system suffers.”