Utilities rate increases proposed

Goochland County's utilities operations will end the year in the red, the Board of Supervisors learned yesterday.

As a result, the county is proposing a major rate increase, especially for users in eastern Goochland's Tuckahoe Creek Service District who could see a 16 percent increase for water and sewer service.

The rest of the county would pay about a 3 percent increase if the proposal is approved after a public hearing in September.

Interim County Administrator Lane B. Ramsey reported yesterday that the Tuckahoe Creek Service District would lose $125,000 in 2009 as operating costs exceed revenue. The water and sewer district was completed in 2004 at a cost of $63 million to serve the eastern end of the county.

The general utilities system that serves most of the rest of the county took in $20,000 more than it spent.

"We're a little disappointed in the performance," said Ramsey, who noted that the increase in the Tuckahoe Creek rates would merely bring them in line with the rest of the county.

He also told the board that the Tuckahoe Creek district afford a new water line being extended from Henrico County for $3.8 million. Goochland must now find another way to pay for the project, he said.

Supervisor Malvern R. "Rudy" Butler said yesterday that he could see raising fees for residential users, but not commercial users, which already pay a higher rate.

He also questioned whether all the money was being properly accounted for in the wake of the county's recent problems with its utilities department.

"I'd like to know where all the connection fees are going," Butler said. "Where's that money? Does anyone know?"

To allow time for the answers, the board put off a public hearing on the new fees until September.

The board also approved accepting bids for a private firm to create a long-range utilities plan for the county. Ramsey said the cost could be around $200,000.

After last night's meeting, some residents criticized raising the rates and spending more money before a new engineer is brought on board and all questions have been answered.

"They're spending and spending and they don't know where the money is coming from or where it's going. We're going to end up like California," Anne Rockecharlie said.

The county is interviewing three finalists for the engineer's job. The former engineer was fired late last year after nearly $200,000 in utilities checks were found undeposited dating to 2003.

The county expects the results of a forensic audit of the department next month. Ramsey said yesterday that the audit firm had reported "no findings of a criminal nature" so far.

Contact Wesley P. Hester at (804) 649-6976 or .