OWASA bills to rise 10 percent

OWASA approved a 2009-10 budget Thursday night that raises the typical water bill 9.75 percent.

Customers using 5,000 gallons per month will see their bills increase $6.68, from $68.24 to $74.92.

The budget includes $18.5 million for operating costs, $9.7 million for payments on bonds issued to help pay for capital projects, and $5.7 million for capital improvements such as replacement and renovation of water and sewer lines.

The operating budget includes $1.7 million in cost reductions including:

• Eliminating 12 positions and freezing seven vacancies

• No pay increase for OWASA employees.

• Reducing recreation days at University Lake from four to three days per week (Fridays through Sundays) starting July 1. Recreation at the Cane Creek Reservoir will continue to be one day per week (Saturdays).

• Deferring a sewer maintenance program (root control, which is part of OWASA's overall program to prevent wastewater overflows from sewers).

• Delaying water meter replacements and normally scheduled testing of large meters in FY 2010.

The capital budget of $5.7 million is 41 percent less than the current level and defers the next phase of planned odor elimination improvements at the Mason Farm Wastewater Treatment Plant until fiscal 2011.

Costs are going up even as water use declines due to conservation and a drop in home building. OWASA projects that due to continuing conservation by customers and the use of reclaimed water by the University, water use next year will be 19 percent below 2001 demand although the number of customers has increased by 15 percent since 2001.

HILLSBOROUGH

Stevens seeking 3rd term as mayor

Mayor Tom Stevens wants a third term so he can keep working to make Hillsborough a "showcase of what is right about small town America."

In a letter on his Web site, Stevens said he thinks a shared vision has emerged for how Hillsborough should grow.

That vision "emphasizes small-town character, celebrating our heritage, sustainable prosperity for folks from all walks of life, and community vitality you can feel walking down the street," he wrote. "As a community we are taking action to fulfill that vision, as evidenced by new parks, new businesses, new events, and new neighborhoods that contribute to the community. No less important is the growing interest in celebrating and preserving our natural and cultural heritage. A steady stream of local, state, and national attention highlight great things that are "happening" in Hillsborough. Our small town gives us much to be proud of and enjoy.

But Hillsborough, which has about 6,500 people, can't afford to be complacent, Stevens said.

"Especially in these current times, our decisions have far-reaching impact in shaping our quality of life both in the near future and for generations to come," he said. "It takes many heads, hands and hearts to preserve the Hillsborough we love while shaping the Hillsborough we envision."

CHAPEL HILL

Council passes budget, reduces town tax rate

The Town Council passed a $49.8 million budget Monday night that lowers the tax rate 15 percent, partially offsetting higher property values from revaluation.

The 2009-10 tax rate of 49.4 cents per $100 of assessed property value means a Chapel Hill homeowner with a $300,000 house would pay roughly $1,500 in town taxes.

The town trimmed last year's 58-cent tax rate by dipping into about $2.5 million set aside through cost-savings implemented last fall amid the global economic crisis. The town also avoided a major tax increase, despite about $6 million in annual debt obligations, lower sales-tax revenue, and a 17 percent increase in employee health coverage.

The budget proposes no layoffs or furloughs, and no salary increases. It siphons $3.1 million from the fund balance but should maintain the town's AAA bond rating with a fund balance of 12 percent of the budget.

staff writer Jesse James Deconto

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