Andrew Landry’s op-ed piece (Feb. 27) criticizes the Brewer City Council for its effort to bring the Water District under municipal control. Landry, who joined the trustees in January 1995 and serves as its clerk, has overseen, with the trustees’ consent, the most dramatic increases in water rates and outstanding debt in the city’s history.

According to the Public Utilities Commission and the district’s annual audits, during this six-year period rate-payers have absorbed a 93 percent increase in costs, with another 15 percent rate increase projected for later this year. This has been accompanied by the district’s total outstanding debt rising by more than 400 percent.

The Brewer Water District rushed to compress many years of potential projects into a very short time frame, driven not necessarily by project merit or need as Landry contends, but by available funding sources. Interestingly, when faced with the city assuming the functions of his district, Landry asks rhetorically: “What’s the hurry”? Let

me explain:

?The district is in serious financial trouble due to its overaggressive practices, raising the specter of a taxpayer bailout. An analysis of the district’s finances conducted by industry specialists Moors and Cabot indicates that: 1) the district has issued an extensive amount of debt relative to its size of operations; 2) the debt they have is poorly structured, in that it is extremely long-term; 3) each year, the district is increasing its retained earnings deficit despite increases in operating revenue; 4) their ability to meet current obligations with margins sufficient to provide adequate protection in the event of unplanned revenue shortfalls is substantially below levels of industry acceptability; and 5) there is an apparent failure by the district to use financial management tools and disciplines in their operations. These factors caused Moors and Cabot to characterize the district as “mortgaged to the hilt,” raising serious concern over whether the district can survive much longer without a significant taxpayer bailout.

?The city’s water rates are out of control, and need to be brought in line with other communities. Recent survey results place Brewer’s water rates near the top of all communities of similar size in Maine, with the average rate being roughly 40 percent lower. In addition, the district’s rental rates on fire hydrants are virtually the highest in the state when compared to communities of any size, at $1,652 per hydrant per year. This cost is applied directly to our city’s tax rate. By comparison, Portland’s hydrant fee is $220, and Bangor’s is $464.

Beyond these immediate issues, the city’s decision to absorb the water system simply makes sense from a public policy perspective. For instance:

?The city is more credit-worthy than the district, and can finance capital improvements at less cost than the district. Brewer is financially strong, can borrow at a lower cost than the district, and is eligible to receive any and all grants and government-subsidized loans currently available to the district.

?Brewer will obtain the benefits of economies of scale, rational structuring of debt and the use of in-house personnel instead of contractors for most work. Other communities have shown that this can translate into significant short- and long-term savings.

?Coordination and communication between departments will improve, reducing disruption to our community. For instance, we will no longer have a street being torn open one year for sewer work, only to be followed the next year by the same roadway being opened again for water-line improvements.

?The city has the capability to operate the city’s water system effectively. We already employ staff experienced in the operation and management of water facilities, and will undoubtedly call upon many existing district staff after the consolidation to continue service. We also have equipment and the financial capacity to deal with new projects and emergencies, unlike the district.

The Brewer City Council wants to shed some daylight on the water district. District trustees have stated in public meetings that they feel they aren’t accountable to the public, and it shows. Rates keep rising significantly above that of other communities. Customer service is poor. Consideration of community plan”ning needs is negligible. Municipal control over water-utility functions will provide elected representatives with direct oversight, thus increasing transparency and responsiveness to community needs.

As the elected officials in this debate, we’re striving for local control and self-determination, while doing what is best for our community. City officials have spoken with more than a dozen other municipalities in Maine that have already acquired their water districts, and their response has been overwhelmingly positive. To quote the city manager of Ellsworth, “… it was the best long-range decision the community made.”

The council looks forward to continuing discussions with the district trustees, and hopes to have their support for pending legislation to dissolve the district. We know – and they know – that it is in our community’s best interests.

Michael Celli is the mayor of Brewer.