THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Friday, July 7, 1995 TAG: 9507070348
SECTION: LOCAL PAGE: B1 EDITION: FINAL
SOURCE: BY MAC DANIEL, STAFF WRITER
DATELINE: SUFFOLK LENGTH: Medium: 71 lines
The City Council is planning to use money intended for improving the city's credit rating and school construction, to provide sewage to a neighborhood that wasn't scheduled to receive it.
The council voted 4-3 to approve an unfunded sewer project and then voted 5-2 to use a city utility fund and deplete a school construction fund to pay for it, despite warnings against using the fund.
According to Suffolk's financial adviser, using the city's utility fund could jeopardize efforts to upgrade Suffolk's bond rating - which determines how much interest it pays for loans.
Earlier this summer, the financial adviser warned the city against using any money from the utility fund, which totaled between $1.2 million and $1.4 million before the council vote Wednesday. The city had been slowly increasing the utility fund and had planned to go to bond-rating houses in New York this fall to ask for a higher rating.
About $340,000 will be taken out of the utility fund to pay for the estimated $741,000 needed to complete a sewer project in Westhaven Lakes - a predominately white, upscale subdivision of 110 homes. The rest will come from the reserve fund for school construction. The change will not kill any current school projects; the fund was being used to pay for unanticipated needs.
Improving the city's sewers has long been a priority in this city of 430 square miles. Some neighborhoods, such as Westhaven Lakes, have suffered from failing septic systems. Outhouses and well water are still in use in others - mostly in the predominantly black, lower income sections.
In a 1992 Health Department survey of neighborhoods in need of sewer projects, Westhaven Lakes ranked 20th out of 51 potential projects.
On Wednesday, priorities changed.
Councilman Richard R. Harris motioned to add the subdivision to the budget, saying it was time for the council ``to come up with the money and do something about it.'' Westhaven Lakes, which is in Harris' voting borough, has received preliminary funding for sewers since 1992, but the lines haven't been laid.
Harris was backed by Councilmen Thomas G. Underwood, Samuel ``Sammy'' Carter and Vice Mayor Curtis R. Milteer Sr.
Mayor S. Chris Jones and Council members Marian ``Bea'' Rogers and Charles F. Brown opposed the addition.
``I can say, in my opinion, that the majority won, but it was not right,'' said Councilman Brown.
``In your opinion,'' replied Underwood.
Vice Mayor Milteer refused to say why the project was worth taking money from other funds. He said Wednesday's vote simply moved the project up by three to six months.
Mayor Jones said the future of the city was hurt.
``There are a plethora of projects that are worthy and needy,'' Jones said. ``And the frustrating thing to me is that we held up the process last year because we didn't want to single out Westhaven Lakes . . . But now, with this action, we have leap-frogged ahead of the project. What was intended to be driven by the availability of money and need now appears to be driven by politics.''
Councilman Harris said Thursday he was satisfied with the vote, adding that he did not believe the city would be financially hampered.
``When you get to a certain point,'' said Harris, ``when is enough money enough money? I think it's a worthwhile project. I think it was a neighborhood in need. You've got sewage running down the street.
``But I personally think that after the vote last night, you're going to see some very serious discussion as to what the utility policy is.'' by CNB