The Chesapeake Beach Town Council took action Thursday, Feb. 20 to bolster the municipality’s Utility Fund by approving two ordinances. However, one of the ordinances—a measure to set certain rates, charges and fees related to the town’s water and sewer service—is likely to be vetoed by Mayor Bruce Wahl.
Under the fee and rate schedule approved by the council on a 4-to-2 vote, customers would pay a combined $9.20 per thousand gallons for water and sewer service. The schedule would remain in effect for the remainder of the current fiscal year.“This is a huge increase for some users,” said Wahl. “I am inclined to veto this ordinance. The flat rate is not fair. It penalizes our businesses.”
Prior to voting on the fee and rate schedule ordinance, the council voted 4-to-2 to transfer $638,000 from reserves to the Utility Fund to pay the debt service. An amendment to the ordinance proposed by Councilman Robert Carpenter that would have drawn an additional $225,000 to pay utility personnel costs was defeated 4-to-2.
“If we’re going to support a phased-in rate we’re going to have to make a gift from our reserve funds,” said Council Vice President Patrick J. “Irish” Mahoney.
“I don’t see this as a gift,” said Carpenter. “I see this as an investment in our future.”
“I will not support it ever again,” said Councilman Jeff Krahling, indicating that any further use of reserves to bolster what is supposed to be a self-sufficient operation would not win his support.
Councilwoman Dr. Valerie Beaudin also expressed misgivings about approving the grant. “This sets a precedent that is extremely dangerous,” she stated.
“We need to be in the business of paying our expenses,” said Wahl, who added “this [grant] is not going to happen again.”
There was public input on the water rate issue during the pre-meeting public hearings on the proposed ordinances and during the meeting when the measures were discussed.
Town resident Joe Johnson suggested the board provide the $225,000 for labor costs from reserves to the utility fund without the $638,000 debt service grant.
During the public hearing, Johnson said the flat rate was needed to “end the subsidy” that had been afforded to certain town businesses for several years. “We’ve been subsidizing the wrong people for too long. The party is over,” said Johnson.
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