Some say mayor’s proposed rate cuts a political move

With election ballots in the mail, Mayor Dennis Hession announced Monday that he will propose 2 percent cuts in sewer, water and trash rates for next year.

“What people are telling me is that the utility rates are having a significant impact on their ability to make ends meet,” Hession said.

If approved by the City Council, the proposed cut would save the average ratepayer about $17 a year, officials said. The mayor hopes the reduced bills will be in effect by January.

Politically, the move was seen by Hession’s critics as blatant campaigning for re-election under the guise of official city business.

Councilman Al French, who was eliminated from the mayoral race in the Aug. 21 primary, compared the proposal to Hession’s July announcement – made the same week that primary ballots were sent to voters – that he would request the hiring of 24 additional police officers. The proposal helped Hession blunt criticism he faced over much of the summer for having blocked earlier City Council efforts to add officers.

Hession’s general election opponent, Councilwoman Mary Verner, was surprised by the mayor’s utility rate proposal.

Verner said the council had been briefed recently to expect a proposal for a 3.5 percent rate increase. After Monday’s announcement, Verner scheduled a special City Council finance committee meeting for Wednesday to consider the possible rate reduction.

“We’ve been working to develop a long-term, stable approach to budgeting,” Verner said. “I want to be able to keep the new police officers and firefighters for more than a year or two.”

Asked if she felt the announcement was politically motivated, Verner said, “Is laughter an appropriate response?”

Hession said the announcement had nothing to do with his re-election bid, adding that it “goes hand-in-hand” with news presented at Monday’s City Council meeting that Moody’s Investors Service has upgraded Spokane’s bond rating. He also noted that he’ll be making his full 2008 budget proposal next week.

The proposal would not cut the city’s utility tax rate. Still, cutting fees for service will affect the amount collected by the tax. Chief Operating Officer Gavin Cooley said the lowered rate would reduce income from the tax by about $600,000 next year.

Spokane’s utility tax for water, sewer and garbage equals 25 percent of taxable charges on a bill. In Washington, Spokane’s utility tax is higher than all but a few smaller towns, according to a 2006 survey conducted by the Association of Washington Cities.

Council President Joe Shogan said he was concerned about the announcement and said the mayor should have informed the City Council about the proposal before alerting the entire region with a news release.

Asked if the release appeared politically motivated, Shogan declined to comment.

Chief Operating Officer John Pilcher said if the rate cut is approved by City Council, the city’s utility departments will be able to maintain balanced budgets, in part, because they have traditionally ended the year with surpluses that were used for capital projects. Because ratepayers pay “rate stabilization” fees aimed at those long-term costs, the city can live with lower year-end surpluses, he said.