50% Sewer Tax Surcharge Recommended

In the wake of the settlement of an Environmental Protection Agency (EPA) lawsuit, Piedmont has been compelled to step up the monitoring of its sewer system and accelerate the rehabilitation of its old clay pipes. The Municipal Tax Review Committee has voted unanimously to recommend that a 50 percent surcharge be tacked on to the city's existing sewer tax for 10 years to pay for it.

The sewer tax already costs Piedmont property owners more than the municipal services parcel tax. But while the tax committee hotly debated the parcel tax levy and the implications for city finances of extending it, committee chairman Michael Rancer said the sewer tax surcharge was basically a no-brainer.

"It's essential and there's no controversy," Rancer said.

The city started replacing sewer lines nearly 20 years ago, and more than 60 percent of the system has already been renovated. But the work has depleted the sewer fund.

This fiscal year, the city is planning to spend more from the fund than it expects to bring in, leaving the projected fund balance under $350,000; about $12 million will be needed for the remaining sewer rehab in future years. Budget scenarios showed that stretching the expenditure out over 10 years was the only way to cover the cost and keep the fund in the black without pushing the tax surcharge up over 50 percent or relying on subsidies from the city's general fund.

The tax committee members wanted to contain the surcharge as much as possible in light of the fact that many property owners will also have to pay for additional sewer lateral inspections and potentially costly repairs due to the new EPA mandates.

The surcharge would be on the ballot in February.