Wednesday, August 11, 1999
Debt would go, but so might control if water system sold
BY TERRY FLYNN
The Cincinnati Enquirer
NEWPORT — The city would dispose of a $9 million debt if voters approve the sale of the water works to the Northern Kentucky Water Service District, but would lose control over possible rate hikes.
City commissioners, by a 3-2 vote Monday, decided to place the issue on the November ballot and let voters decide if they want the water system sold.
City officials filed the measure Tuesday with the board of elections Tuesday.
City Manager Phil Ciafardini didn't want to discuss specifics of the water district's offer while the deal is finalized over the next month.
But he said part of the agreement would include the district assuming the $9 million debt the city has on the water system.
“A part of the negotiations over the next 30 days will be when the district would assume control, if voters and the (state) Public Service Commission approve the deal,” he said.
“If everything fell into place, I could see us turning over the keys on Jan. 1.”
City Commissioner Beth Fennell, who with Commissioner Jerry Peluso voted against placing the issue on the November ballot, said Tuesday she was concerned a vote on the sale was being pushed now by the city administration simply because of the Tuesday deadline for filing.
“I didn't feel we should be driven by a deadline,” she said. “Will I actively fight the sale? No. But I question the city's role in promoting the sale.”
She said commissioners and Mr. Ciafardini had discussed hiring a marketing expert to promote the sale of the water system.
“It makes me wonder if we are really letting the voters decide, if we use a marketing person to sell the idea to the citizens,” Ms. Fennell said.
But Mr. Ciafardini said the city was interested in hiring someone “who had the time and expertise to get the information about the sale out to the people.
“We are not concerned with promoting the deal but with looking for every available avenue to get the information, pro and con, to all the citizens.”
Ms. Fennell also emphasized that if the Water Service District assumes ownership of Newport's water, any control the city now has on rate increases would be gone forever.
Ron Barrow, the district's general manager, said Tuesday that one major benefit to Newport water customers, if the sale is approved, would be a chance to ease the effect of water rate increases.
“The last rate increase from the city was about 30 percent,” he said. “As part of the Water Service District, a rate increase would be spread among 67,000 rather than 7,000 customers. A larger base to distribute an increase would soften the rate effect.”
He said the Water Service District sees the purchase of the Newport system as a win-win situation because the district also picks up an additional 7,000 customers.
The district serves about 60,000 customers in Campbell, Kenton and Boone counties.
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