THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Sunday, November 6, 1994 TAG: 9411050125
SECTION: PORTSMOUTH CURRENTS PAGE: 12 EDITION: FINAL
TYPE: Cover Story
SOURCE: BY TONI WHITT, STAFF WRITER
LENGTH: Long : 112 lines
ON TUESDAY, PORTSMOUTH voters will decide not whether their utility rates will rise but how high the jump will be.
The city's residents who now have the lowest utility rates in the region, will be asked to back bonds which will be used to pay for $23 million in improvements to its water and sewer systems. If they don't approve them, the city intends to spend the money anyway and will have to go after more expensive financing, said James R. Spacek, director of public utilities.
Nearly $14 million of what they are asking for is mandated by federal regulations - the city has no choice. The remainder will be used to replace inefficient and aging lines and equipment.
If the referendum is approved it will allow revenue bonds, to be backed ``by the full faith and credit'' of the city, so called ``double barrel bonds.'' Without voter approval the city will have to go after bonds backed solely by the revenues of the utility system. Those bonds come with a higher interest rate.
Spacek said the rates will go up either way, but he said it is impossible to predict by how much until the bonds are issued and the interest rates set.
``I think we'll still have the lowest rates in the region and the service will be better,'' he added. ``The lower interest rate will save the city thousands of dollars in interest over the life of the bonds.''
Spacek said there has not been any controversy over the referendum and even little interest in informational sessions he has held. In September, Spacek held session to explain the improvements and other expeditures and had planned a tour of the city's water and sewer facilities.
The city plans to build a new $4 million water tank at Godwin Street to replace an existing tank that is deteriorated. Officials also plan to spend $2 million to rehabilitate deteriorated sewer and water mains throughout the city.
The city has slated $1.3 million to correct water and sewer projects in several neighborhoods including Highland-Biltmore, Truxtun, South Portsmouth, Simonsdale, and the Mayflower Road area. ILLUSTRATION: $23 million in improvements
Name: Neighborhood Improvement Projects
Areas affected: Highland-Biltmore, Truxtun, Brighton/South
Portsmouth, Simonsdale, Mayflower Road.
What it would do: Designed to correct water and sewer problems
while street and drainage projects are under way.
Cost: $1,350,000
Name: Master Rehabilitation Plan
Areas affected: Neighborhoods throughout the city
What it would do: Replace older, deteriorated water and sewer
mains and facilities.
Cost: $1,853,000
Name: George Washington Highway & Victory Boulevard Utilities
Areas affected: Cradock and West Cradock areas
What it would do: Repair older concrete sewer lines.
Cost: $260,000
Name: Lake Kilby Water Treatment Plant, Phase III
Areas affected: Lake Kilby
What it would do: Construction of new treatment processes and
facilities to meet more stringent federal regulations.
Cost: $13,907,500
Name: Replacement of the Godwin Street Water Storage Tank
Areas affected: Entire city
What it would do: Construct a new elevated tank to replace a
non-repairable one. Helps ensure adequate fire protection and water
storage for the city.
Cost: $4,025,000
Name: Godwin Street Maintenance Complex
Areas affected: Maintenance complex
What it would do: New facility will house maintenance activities
and equipment.
Cost: $220,000
Name: Elevated Tank Repairs
Areas affected: Cedar Lane
What it would do: Painting and structural repairs to the Cedar
Lane elevated water tank.
Cost: $465,000
Name: Transmission Main Valve Replacements
Areas affected: Entire city
What it would do: Continues replacement of inoperative valves to
ensure operation of the main transmission lines linking the city
with Lake Kilby Water Plant in Suffolk.
Cost: $120,000
Name: Cahoon Dam Emergency Spillway
Areas affected: Cahoon Dam
What it would do: Create an emergency spillway to keep the dam
from being overtopped and failing during hurricanes or other natural
disasters as required by the National Dam Safety Act.
Cost: $72,500
Name: Heavy Construction Equipment
Areas affected: Utilities system
What it would do: Provide for the replacement of backhoes and
other equipment used in utilities maintenance.
Cost: $98,570
Name: Improvements, Extensions & Additions to the Distribution &
Collection Systems
Areas affected: Varied
What it would do: Smaller repairs to the water and sewer systems
aimed at solving smaller problems while they are still manageable.
Cost: $528,430
Grand Total: $22.9 million
Source: Portsmouth Department of Public Utilities
KEYWORDS: REFERENDUM PORTSMOUTH ELECTION by CNB