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C^ <br /> MINUTES OF PUBLIC HEARING ON PROPOSED WATER AND SEWER RATES AND �`� <br /> FEDERAL REVENUE SHARING FUNDS , JUNE 7 , 1978. <br /> A public hearing was held on June 7, 1978 by the Leesburg Town <br /> Council in its Chambers, 10 West Loudoun Street, Leesburg, Virginia <br /> on proposed water and sewer rates and Federal Revenue Sharing funds. <br /> The meeting w cal .dm �rorder• by the Mayor. Present were: Mayor <br /> Mary Anne New Rn9� epi r. ole, Stanley D. Herrell, Jr. and John W. <br /> Tolbert, Jr. ; also Town Manager John Niccolls, Assistant to the. <br /> Manager Jeffrey H. Minor, Director of Engineering Andrew G. Shope <br /> and Town Attorney George M. Martin. Absent from the meeting were <br /> Councilmembers Charles E. Bange, James A. Rock and C. Terry Titus. <br /> Mayor Newman prefaced the hearing by stating that Council has <br /> had a series of proposed new rates under consideration for the past <br /> five months. A new set of rates has been advertised for this hearing <br /> tonight and is as follows : For in-town users, a $3.00 quarterly bill- <br /> ing charge, plus $2. 88 per thousand gallons for water and sewer usage; <br /> for out-of-town users, a $3.00 quarterly billing charge, plus $4. 32 <br /> per thousand gallons for water and sewer usage. <br /> The' following people spoke against the proposed rates : <br /> Mr. Melvin Dore, a resident of Country Club Subdivision, protested <br /> the 50 percent surcharge on out-of-town residents and felt that the im- <br /> provements in out-of-town subdivisions should have been paid for a good <br /> E= many years ago. Both Mayor Newman and Mr. Herrell pointed out that <br /> TY the systems must be self-supporting and that the residents of Leesburg <br /> N could not be expected to subsidize those living outside the corporate <br /> Si.. limits, from whom the Town receives no real estate taxes ; also, that <br /> C when the water moratorium is lifted (hopefully sometime in the near <br /> future) ,. more money will be coming in for connection and availability <br /> fees. <br /> Mr. Summerfield, Tillett, Jr. , a resident of the Town, felt that <br /> the proposed rates are too high - his present bill would double. Mr. <br /> Niccolls said the bill should be an increase of. only about 80 percent, <br /> not double. Mr. Cole pointed out that he is on sewer only and his <br /> I <br /> bill will be tripling. Again, Mr. Herrell said the system must sup- <br /> port itself or real estate taxes will have to be raised. <br /> • <br /> Mrs. Margie Harrison, a resident of Fairview Subdivision (in-town) , <br /> asked when it is proposed to discontinue the excessive use charges? <br /> Mayor Newman agreed' that these charges should be lifted, however, <br /> at the present time, one well is out of service` and the Hospital <br /> standtank is being repaired and painted. Mrs. Harrison also re- <br /> quested that questions raised at the last hearing by Mr. McGregor <br /> be answered. Mr. Niccolls advised that a copy of a report of May 5 <br /> to the Mayor and Council concerning any conflict or discrepancies <br /> was sent to Mr. McGregor on May 6th and he has received no reply <br /> from him, other than a phone call tonight. <br /> Mr. Rob Roy McGregor, of Country Club Subdivision, was somewhat <br /> confused as to the new proposed rate as it would affect his bill per- <br /> sonally. Mr. Niccolls explained that his present bill is based on <br /> "excess use" charges and it is proposed to drop these charges when <br /> the new ones go into effect. Mr. McGregor was also concerned about <br /> the capital outlay program over the next five years of $1, 300, 000. <br /> He suggested trying to amortize this amount overa. longer period of <br /> time in order to reduce the terrible cash flow needs. He also felt <br /> that the 50 percent surcharge has been in effect for many years. In <br /> looking at the revenue sheets, he could find no entry for taxes to <br /> the utility company., nor any transfers to show revenue derived from <br /> taxes from in-town residents. He, therefore, felt it improper for <br /> the Town to charge the out-of-town users on a continuing basis over <br /> and above the normal charge. Mr. Niccolls explained in detail the <br /> reasons for the transfer of funds from the General Fund to the Utility <br /> Fund - he felt this is a very above-board and open way of doing this. <br /> Mr. Niccolls further said he did not believe it is possible to pull <br /> out a numberand say this is the exact amount that should be charged <br /> out-of-town customers because of contributions made indirectly to <br /> the tax-supported services. The surcharge has to be seen as an in- <br /> tangibly calculated level of charges added to the out-of-town bill. <br /> The Town can issue bonds at about 5-3/4 percent and he did not be- <br /> lieve that any self-supporting utility could do this unless it com- <br /> prises a part of a general purpose government such as Leesburg. <br />