Honolulu Mayor Mufi Hannemann announced Thursday sewer fees on Oahu would increase 3 to 5 percent every year for the next 25 years as part of a consent decree with the United States Environmental Protection Agency and three environmental groups that filed suit against the city in July of 2004.
Currently the average single family household on Oahu pays $90.96 per month in sewer fees, which includes a base charge of $59.47. Under the worst case scenario the average cost would rise to $293.35 per month by 2035.
"I inherited this problem and I wasn't going to do what my predecessor did to me," said the mayor, "(which) was kick down to me."
On Wednesday the Honolulu City Council voted 9 to 0 to accept the proposed settlement outlined in the consent decree, which won praise from Hannemann.
"I want to thank them for recognizing the importance of the good deal that the city got," he said.
The agreement forces the city to upgrade or repair various aspects of its wastewater collection system and upgrade the Honouliuli and Sand Island wastewater treatment plants by 2024 and 2035, respectively.
Environmental Services Director Timothy Steinberger said work on the island's wastewater collection system is expected to cost $3.5 billion over ten years.
However some of the work has already been completed or is in the design and construction phase. Upgrading the two wastewater treatment plants will cost another $1.2 billion, for a total price tag of $4.7 billion.
The city has the option of finishing upgrades to the Sand Island plant in 2038 instead of 2035 if more time is needed for financial planning.
Hannemann said the city would tap into federal grants and low interest loans whenever possible so that the burden of the $4.7 billion in upgrades and repairs would not fall solely on rate payers.
"So all of this is to say that we're not putting all our eggs into one basket," said the mayor. "We are not just going to allow the rate payer to have to bear this cost."
Steinberger said the first sewer fee increase would likely go into effect in fiscal year 2012 and would be part of numerous fee hikes, preferably over six year periods.
"We like to see about a six year block in rate increases because it makes the bond raters comfortable when they see that commitment," he said.
The City Council would have to approve any schedule of sewer fee increases proposed by the administration.
On July 1 sewer fees on Oahu increased 15 percent, the last increase of a six year schedule that was approved by the Council in 2005.
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