Council waits on capital budget

PDF: Sewer fee

The City Council voted 9-0 Tuesday night to defer the 2009-10 fiscal year capital improvements budget because of questions about how the money was being spent.

"We're going to have more detailed discussion next week," said Councilwoman Carol Berz, chairwoman of the Budget, Personnel and Finance Committee.

During a meeting of that committee, Councilwoman Deborah Scott raised some concerns about where dollars in the $59 million budget were being spent. City officials said no money had been allocated this year for traffic programs such as speed bumps or neighborhood projects like roundabouts in East Brainerd.

"This budget might not be prioritized correctly," she said.

Councilman Andraé McGary suggested the council look at shifting money among projects or supplementing some projects with reserves.

In other business, Jerry Stewart, the city's director of wastewater resources, proposed a 3 percent increase in user fees for sewers to help pay operational costs. The measure is expected to come before the council next week.

The fee increase would mean an average 70 cent increase on users' sewer bills.

Mr. Stewart said the increase was needed because revenues had been going down, partly because more homes, business and industries are installing more energy-efficient toilets.

Also, the council voted 9-0 Tuesday night to rebid a $2 million fire hall at Enterprise South. The Associated General Contractors of East Tennessee questioned the legality of the lowest bid. An electrical subcontractor in the bid did not have a license to operate in Tennessee, AGC officials said.

The council decided to put the item out to bid once more to avoid a potential lawsuit.

WHAT'S NEXT

The City Council will vote next week on a 3 percent rate increase to city sewer fees. The increase would mean a hike of 70 cents on the average customer's water bill, city officials said.