[Originally published in the OTHER paper, Eugene, Oregon in July, 1996.]
CPA challenges wastewater feesby Wanda Ballentine
Citizens for Public Accountability held a press conference prior to the City Council meeting on June 26 to protest that, on top of the $32 million in tax abatements and subsidies already granted Hyundai, the proposed charges for treating its wastewater will gain them another $12,740,000. Neale Hyatt, an accountant, plowed through the City's confusing formulas to come up with the following description of the difference between what Hyundai and other citizens pay for wastewater treatment.
Bonds for building the sewage treatment plant were taken out in the early 80s. The Metro Wastewater Management Commission has established an "equalizer rate" that purports to equalize past infrastructure costs among new users. This charge does not cover the remaining debt on the bonds, however, though ratepayers are still paying on them. Hyundai will not contribute.
Eugene's System Development Charges raise funds for current and future system needs but are very low compared to those of other cities. This is one of the attractions for industry, but may be very poor community planning.
All charges are based on the assumption that the average household uses 200 gallons of water a day. Hyundai will use 2.8 million gal/day, which is equal to 14,000 households, yet it is only being charged 1/3 of that amount:
| Citizens
pay
Hyundai pays Metro Wastewater (regional) charge $ 331 $ 110 Eugene hook-up charge $ 474 $ 158 City Systems Development Charge $ 561 $ 187 Total $1,365 $ 455
|
Hyundai's cost if paid at same rate as citizens:
14,000 x $1,365 = $19,110,000
Hyundai will actually pay:
14,000 x $455 = $6,370,000
That sounds like a lot, so maybe they ought to get a break -- but remember the parent company is worth something like $70 billion -- which may be why it's keeping its assets out of this.
The argument is that Hyundai's use is 'steady,' whereas homeowners' varies a great deal. "That's baloney," said Hyatt. "It doesn't matter what hours the sewage is produced." As a society we have finally recognized how precious water is, and the importance of conserving and keeping it unpolluted.
Chemical sewage is not the same as raw sewage; it contains substances that can destroy the bacteria and enzymes that do the job of breaking down normal sewage. If that happens raw sewage can be released into the river. And a new sewer pipe is being installed for Hyundai's use.
©Wanda Ballentine, 1996