Rates expected to go up beginning this month

Morgan City residents and business owners will have to dig deeper into their pockets to pay their utility bills starting this month, following the city council’s approval of a rate hike.

The increase, according to the Mayor Tim Matte’s estimate, will cost residential customers an extra $20 a month, or at least $240 a year. Businesses will have to fork up an extra $40 a month, or at least $480 a year.

The last time the city raised rates on its electricity was in the 1970s. There was a raise on water fees in 2003 and on gas in the 1980s.

Since 1951 – 58 years ago, the Morgan City Council has used revenue from its utility payments to fuel its general fund which funds items such as police and fire budgets and public work crews.

Matte has said that the city needs the money to offset a recent nine percent decline in sales tax revenues, and an exhaust of the city’s rainy day funds, in addition to dire necessary repairs to the city’s water and sewage systems. “Things have come to a head. There are no more hidden pots of money,” he said.

The mayor also believes that raising the city’s sales tax percentage won’t generate enough funds to compensate for the loss. Currently it is at 8 percent.

“I live here. I work here. My son is young and he is raising his family here. I have two beautiful granddaughters. This is going to hit him as well,” Matte said.

The Morgan City Council approved the rate hike last Tuesday in a 3-1-1 vote, despite objections from a packed council chambers.

City employee Kathleen Wilson told the council that although she is young and maintains good earning potential, “most Morgan City citizens do not.”

She said that while she can afford a $20 rate hike, many cannot. “I had to move in with my mother, simply because she cannot make it by herself. I refuse to let her go undone. I work for the city. I understand the city needs to function, but there has to be another way to get this money.

“You’re killing your citizens,” Wilson added. “I don’t want to have someone who cannot afford to cool themselves in the summertime or warm themselves in the winter time too afraid to turn on their heaters or too afraid to turn on their air conditioners!”

Dana Escort Bowie, a working mother of three, said the increase will be harder for her and her husband, even with both of their incomes. “I can’t imagine how much harder it’s going to be for someone with only one household income. Right now is not the time for this,” she said.

Former Fire Chief Harry Porter asked, “More costs to live in the city? Are we getting what we’re paying for?”

Another resident, Tina Emmett, asked Matte, “What are you doing to make the money you have work for you?”

Only one resident at last week’s meeting spoke in favor of the measure. Resident Carolyn Robicheaux said, “I don’t think the city is doing this to hurt people. How else will the city generate some sort of revenue to have something, to do something that needs to be done?”

Robicheaux was later booed by a large group of residents present who were against the utility increase.

Morgan City councilmen voting in favorof the rate hike were Louis Tamporello, Larry Bergeron and Luke Manfre.

Councilman Ron Bias abstained from voting.

Councilman Tim Hymel was the only councilman to vote against the measure.

Before voting, Manfre said, “We’ve known that this day is coming. I’m sorry it’s unavoidable, but it is just that, unavoidable. This is the end of the line and we do not have a choice.”

“This is probably one of the hardest things we’ve faced in the last five years,” Tamporello responded. “This isn’t funny. This is not something we’re taking lightly. We’ve just run out of funds. The one fault we have is that we should have looked at this about three years ago, when we had funds coming in.”

He continued, “The worst thing about all of this is that everything that was said out there tonight is true. There are a lot of people out there on fixed incomes. This is going to hurt us all, but bottom line is if we don’t have the services out there, it isn’t going to do anyone any good. This isn’t going to stop the bleeding; it’s just going to put a tourniquet around it.”

Bias, who later abstained from voting on the measure, said he “agrees with the pros and the cons of the situation. I agree with my colleagues. This is a wonderful thing. The city needs revenues. It is not my desire to see city employees laid off.

“But then I would hate to see some person or senior citizen have to make the choice of keeping cool and taking medication, or coming to a demise one way or another because $20 makes such a difference in their household,” he said. “The city has robbed Peter to pay Paul so much that Paul is finally broke.”

In casting the lone vote against the utility hike, Hymel told the packed council chambers, “I’m personally not for raising rates on anyone. I don’t like the timing of this. I am concerned about how much time we have before we have to layoff city employees, or to reduce garbage collection to only once a week. But I also know $20 a month is a big sacrifice for a lot of people.

“However, I am still searching for other avenues, and that’s still my opinion. Are there any other avenues we can take?” he added.

Bergeron, the final speaker, asked Matte if he had looked at further extending the rate hikes.

The mayor said, “Certainly, which is why the rate hike will be phased-in, this week, on Jan. 1, 2010, and on Jan. 1, 2011.”

Councilman Tim Hymel cast the lone vote against the rate hike.