Water Merger Analysis
Updated: Monday, December 10 2012, 09:59 PM EST
The city of Asheville has drawn up its own financial impact analysis of the proposed merger of water and sewer systems as outlined by state lawmakers. The financial impact analysis is a review of the MSD study on water and sewer rates in the event of a merger compared to today's current and projected water rates. The study done by a third party firm found ratepayers could save more than $20 million over a 9 year period.
Asheville city staff say the study does not take into account the cost to taxpayers once the city loses revenue from the water system. The city is now allowed under the Sullivan Act to use 5 percent of city water revenues for other water related street and sidewalk improvements. That money would go away and the city's cost for providing other services now shared by the water department would rise.
The MSD is now considering a proposal as part of the merger talks to offer the city $57 million over a 50 year period for the system's assets.
By Frank Fraboni
Follow Frank on Twitter @Frabonz