Mayor Ron Littlefield handed over a second water quality program proposal to City Council members Tuesday that includes a rate cut for nonresidential users but keeps residents paying the same fee.
The mayor told the council members that he could give nonresidential users a slight break for a few years, but they would have to pay the same rate within five years.
"It cannot be a permanent break," Mr. Littlefield said.
He spent an hour during the Public Works Committee of the City Council going over his proposal. It comes just a week after the City Council's independent committee on water quality suggested that the city cut its water quality, or stormwater, budget by more than half -- from $21.5 million to $10 million.
The city administration's budget presented Tuesday calls for a $12 million budget the first year, ramping up to $16.7 million by the fifth year. Residents would pay the same rate -- $115.20 annually.
PDF: Water Quality Revenue Projections
Nonresidential users, such as churches, industries and businesses, would pay $6.50 a month per equivalent residential unit, or $78 a year.
But there would be a 50 cent increase per year until it equals the residential unit the fifth year, Mr. Littlefield said. He said the reasoning for making it the equivalent of the residential rate is because under state law fees cannot be dissimilar.
Bill Raines, chairman of the council's independent committee, said immediately afterward that he thinks "ramping up (the nonresidential rate) that much is still way too high."
"It's an improvement in the right direction," Mr. Raines said. "It certainly could have been brought to the table three weeks ago. It's still too high."
The City Council formed the independent committee in December after it approved an initial water quality budget that upped rates from $36 a year to $115.20 annually. Businesses, industries and churches immediately said it was unfair to them because they can qualify as multiple residences.
WATER QUALITY PROPOSALThe city administration proposed a reduced water quality budget Tuesday. Highlights of the budget include:* $16.7 million: Total budget after five years* $12 million: Overall suggested budget this year* $115.20: Annual rate residents would pay* $78: Yearly rate nonresidential users would pay this year per equivalent residential unitSource: Chattanooga
Council Chairman Jack Benson said Tuesday the city attorney now will draft two ordinances, one with the mayor's proposal and one with the independent committee's proposal. The council will meet at 2 p.m. next Tuesday to discuss the different proposals.
The council also has the option of leaving the rate as is or drafting its own budget, he said.
Mr. Benson said the mayor's proposal appeared not to have any "frills" in it.
"I didn't want any desirables," he said. "That's what I was worried about."