Burke Questions Emanuel Water Fee Plan

As the City Council held its first hearing on Mayor Rahm Emanuel’s proposed 2012 budget Wednesday, its longest-serving member questioned the plan to end water fee exemptions for non-profit institutions, one of many politically-sensitive measures in the cost-cutting budget.

Emanuel’s budget, which seeks to close a projected $636 million deficit, calls for a 25 percent increase in water and sewer fees and the elimination of water fee exemptions for non-profits. Veteran Ald. Edward Burke (14th Ward) expressed concern about the effect of that proposal on parishes and parochial schools, which have long served as local political power bases.

“We may have a political issue with those,” Burke said.

Budget Director Alexandra Holt said ending the exemptions for private schools and religious institutions would bring the city $7 million. Hospitals that work predominately with low-income patients would receive a 20 percent discount on water, she said, which prompted Burke to urge Holt to offer parishes a similar reduction.

“Perhaps as you’ve made concessions for hospitals that serve the indigent, you might think about continuing waivers for some small Catholic parish or Lutheran parish or a synagogue that is hard pressed, and see what the dollar effect might be” Burke said. “You get my point? We don’t want to throw the baby out with the proverbial bathwater.”

Ald. Patrick O’Connor (40th), Emanuel’s unofficial council floor leader, also worried about the water rate hike, which would cause the water and sewer bill for the average household to go up to $120 in 2012 with further 15 percent increases each of the next three years.

“My concern is that it’s a significant increase,” O’Connor said, adding that he is particularly concerned about how senior citizens would be affected.

Holt said some seniors would still receive water exemptions. She said the city’s water and sewer rates are very low, with water costing less than a penny a gallon .

“Those are some of the lowest water rates not only the country but also in the Great Lakes region,” Holt said. “Next to the city is Evanston, and they are still higher than we are.”

Holt also said homeowners with water meters would not be impacted by the water and sewer hike next year.

“We think that it’s actually bad from a revenue perspective but really great from a homeowner perspective, because you’re only really paying for what you’re using,” Holt said.

Holt also assured aldermen that the city would not reduce the so-called “aldermanic menu,” which allots each council member $1.3 million to use, at their discretion, for projects in their ward.

“I’m very heartened and gratified to hear, as I’m sure my colleagues are to hear that,” said Ald. Joe Moore (49th).

Throughout the hearing, aldermen congratulated Emanuel’s finance team on the budget proposal while reminding them about the possible political fallout from some of its components.

“Despite some of the politically impalpable and unpopular recommendations you are making, I think there is a recognition among the body that you’ve done a very good job of being fair and across the board,” Moore said.

“I commend the mayor on possibly being a one-term mayor, if that’s what he wants,” Ald. Richard Mell (33rd) said, prompting laughter from his colleagues. “I’m serious. I think he’s willing to do that. He’s willing to make that hard call … I don’t think he will be a one-termer.”