MORGAN CITY UTILITIES GOING UP SEP 1ST

by: Howard J. Castay, Jr.
(from the Tri-Parish Times)

Is fighting Morgan City Hall’s proposed utility rate hikes akin to shooting spitballs at a battleship?

One Morgan City resident thinks so. Others are mulling a measure seeking to raise utility rates across the board starting Sept. 1.

Mayor Tim Matte pitched the rate hikes in late July. It will be decided at Tuesday's city council meeting following a public hearing.

Matte's proposal will cost residential customers, on average, an additional $20 per month, or $240 annually. Businesses could expect to pay double that - $40 monthly or $480 annually.

The mayor contends he needs the money in order to offset Morgan City's 9 percent drop in sales tax collections. He said funding Morgan City's budgets with the current budget has become a nightmare. Yet, at the end of 2008, the city had a $1.236 million profit in utilities.

It's been two weeks since Matte first proposed the idea. But it isn't sitting well with business owners or residents.

But Annie Keton, a Morgan City homeowner, believes objecting to the utility rate hikes will be as effective as "shooting spitballs at a battleship."

Keton said given the area's declining economy, families and businesses are struggling to keep their heads above water financially. "Our city government should be throwing a life ring, not an anchor," she said.

"I understand that costs are rising and it has been a while since our last increase; but, now is not the time."Many of us have experienced wage cuts, hourly cuts and layoffs. Raising our utility rates , any percentage, could be catastrophic to families and businesses in our area," she added.

Since 1951, Morgan City has relied on utility payments to fund city police and fire budgets and pay public work crews. Dr. Charles Russell Brownell, who was mayor for 32 years, operated the city's first budget that way.

During his four terms as mayor, this is Matte's first proposed utility rate hike.

The last time a Morgan City utility was raised was under Tim Tregle's administration in 2003. The city council approved his request to raise water collection rates.

Prior to Tregle's term, Morgan City last approved a garbage rate hike in the late 1980s during Mayor Cederic Lafleur's term.

Jackie Price, owner of The Frame Shop in Morgan City, said her electric bill this month was $200 higher than her July bill. "And this is before the increase on Sept. 1," she exclaimed.

Price is calling for Matte and city administrators to level with businesses before she forms an opinion on the need for an across-the-board hike. "But unfortunately, I don't think that is going to happen," she said. "I don't think enough people know what's going on, and frankly, maybe they we're not supposed to know what's going on because they (the city) doesn't want us to."

"Also, I believe there are people who live in this city right now who can't afford electricity," she continued. "You heard me. There are people who have running water. But they can't afford the electricity. I don't know who they are, but I've heard the stories."

Similarly, homeowner Max J. Thibodeaux Jr. is skeptical for the need to raise all city utilities. "Matte's proposal to pass an ordinance to increase utility rates because of the shortfall of sales tax revenues is not the answer to the city's lack of economic growth and development," he said.

"If this proposed ordinance is approved by the city council, it will have serious consequences for every resident in this city, especially the poor and the elderly who are on fixed incomes and are struggling to survive from day to day," he added.

Thibodeaux is among those calling for Matte and the Morgan City Council to rethink short-term rate hikes to solve long-term problems." Unless our elected city leaders change directions and begin to provide the type of visionary leadership that will promote innovative ideas with positive goals and objectives that benefit the majority of the people - not just the chosen few amongst the parish's special interest groups - Morgan City is not going to be able to create the type of population base that is needed for future economic growth and development," he said.

"If Morgan City had the right environment, we wouldn't have to be concerned about hunting for new businesses, industries and investors. They would hunt us!" he said.

"Leadership is more than just a word. Leaders solve problems, they don't create them."

Now there are two St. Mary Parish councilmen to join the anti-rate hike fray. Logan Fromenthal, whose parish district includes Morgan City, is strongly opposed to Matte's proposal. He joins Kevin Voisin, who indicated his displeasure earlier.

"I don't agree with these rate hikes at all," he said. "A number of years ago, we passed a $10 million bond issue: $7 million for electricity and $3 million for water improvements. Never has there been a complete explanation of how this money was spent since then."

According to Fromenthal, voters were told the bond issue was essential because Morgan City's filtration plant had just received word that it was not up to state Department of Environmental Quality codes.

Before receiving the bond money, Fromenthal said Morgan City was forced to buy an "exorbitant amount" of chemicals to treat the water to meet state quality standards.

"Where is the savings from this?" he asked."Look, I really don't know what the city's budget is now. I haven't seen it. But I think they could tighten up their purse strings a bit," Fromenthal contended.

"If they're faced with having to spend $10, I think they could get by with spending $7."The savings, he reasoned, would add up.

Home and business owner Frank "Boo" Grizzaffi III, who faced Matte in the 2008 mayoral election, is also questioning the timing of the current mayor's rate hike request.

"One of (Morgan City's) biggest problems is that the city's infrastructure is deteriorating," he said. "But now is not the time for a utility rate hike with the economy upside down and jobs in danger."Grizzaffi said utility customers and residents should demand a line-by-line examination of the city government's budget before supporting a rate hike.

"Before you go to the public for money, you have to have a clean house," he said.

"If you haven't looked at yourself for money, you can't look at anyone else."

Matte told the Tri-Parish Times in an interview last week that raising utility rates was a last resort. He said the move would delay having to adjust city employees to a shorter workweek or laying off staff. "That would curtail us from providing the best service that we can to our residents," the mayor explained.

Tuesday's regular city council meeting begins at 6 p.m. in the city council chamber, which is located at the corner of U.S. Highway 90 and Myrtle Street. The date is August 25th.