Stopping water, sewer money transfers withdrawn from Columbia Council agenda

A debate on City Council has been postponed about ending a years-old practice of transferring millions of dollars from its water and sewer accounts to pay for municipal services not directly related to those utilities.

Councilman Moe Baddourah’s recommendation to have council vote Tuesday to stop all such transfers will not happen at council’s regular meeting, Baddourah said Tuesday morning.

He said the wording of the resolution, drafted by the city attorney’s office, is not what he wanted. “I want to reword the whole thing,” Baddourah said. The incorrect version of the resolution was published as part of council’s agenda for Tuesday’s meeting.

Baddourah’s suggestion was an attempt to repeal a 3-year-old decision that limits the transfer to no more than 5 percent of gross water and sewer revenue. The new proposal would have ban the transfer outright starting July 1.

Council has been criticized and even sued over the transfers from income provided through the water and sewer systems. The water system, which serves 377,000 customers in the Midlands, is a cash cow for the city, producing hundreds of millions of dollars in revenue.

Over the years, council has used the transfers to pay for economic development efforts, museum operations and minority business programs among other services.

The State newspaper reported in 2010 that during an 11-year period, council transferred $80 million, or an average of $7 million annually.

Council has restricted how much it moves water and sewer revenue into the general fund, which pays for the majority of services. In this fiscal year ending June 30, for example, the transfer was $2.5 million. In the fiscal year ending June 30 2015, council moved $4 million from the utilities fund.

Because the city uses some of the money to pay for public safety, city leaders would have to find a new source of money for those services.

In a related matter, city staff is asking for $115,000 more to pay a consulting firm that is examining rates that customers pay as well as tracking Columbia’s five-year financing plan for improvements.

And after spending nearly $1.1 million to refurbish council chambers and other upgrades at City Hall three years ago, council is considering spending about $16,000 to change the configuration of its desk in council chambers and in the conference room where members hold work sessions.

The job, if approved, also would add speakers so that members can hear each other better in both areas at City Hall.

This story was originally published February 1, 2016 at 4:23 PM.