Goochland supervisors decided not to vote on proposed higher connection fees and water and sewer rate increases at last week’s board meeting.

The connection fees would have applied only to the troubled Tuckahoe Creek Service District (TCSD) area. A $3,000 increase had been proposed.

The water and sewer system covering 8,000 acres was created to serve the West Creek Business Park in eastern Goochland, and was designed to attract commercial development.

Water and sewer rate increases, on the order of 13 percent for TCSD and 5 percent for the rest of the county, had been advertised for public hearing.

About a dozen speakers strode to the microphone to voice opposition to the plan, even after board chairman Andrew Pryor, District 1, said that the board did not intend to vote on the increases that evening.

“We need to attract users rather than raising rates,” said Scott Gaeser, chairman of the Tuckahoe Creek District Advisory Board.

The advisory board is a public body composed mainly of landowners who put up their property as collateral for the $63 million debt, issued through the Virginia Resource Authority (VRA), that created the system.

“We need a long term solution,” said Gaeser.

Lower Tuckahoe resident Ron Neese suggested opening up the TCSD to more residential development.

“We don’t think it’s fair to for us to have to pay for the problems in the service district,” said Neese.

A common comment throughout the evening was the need to gather more information before taking any action.

Later in the week several supervisors made the same point.

“We’re not in any crisis mode,” said District 5 supervisor James W. Eads. “We want to make sure we have all the information needed.”

Eads also said he favored raising rates and connection fees for the non-governmental customers in the courthouse area to recoup start up costs from that system.

“It’s my personal opinion that nothing will happen before January,” said Eads.

District 4 Supervisor Malvern R. “Rudy” Butler also counseled caution before raising rates. “We’ve got all kinds of questions,” said Butler. “We need to get all the facts. I don’t think I could vote on rate increases now.”

But Butler did say he favored action to raise connection fees before next year.

“Connection fees should be done this year,” he said.

District 3 Supervisor Ned S. Creasy said late last week he was concerned over the need to certify to the VRA that the TCSD is raising enough revenue to pay the debt service on bonds used to create the district.

A letter was due in May from the county to VRA, but that deadline was missed.

Creasy said he was also concerned about past certification letters.

“I’m wondering if past letters were accurate,” said Creasy, citing Interim County Administrator Lane Ramsey’s disclosure at the August board meeting that in 2006 certain properties in West Creek were moved to the TCSD billing system.

“I hope there wasn’t any hocus pocus bookkeeping in the past,” he said. “We don’t know why customers were moved from the county system to TCSD.”

Creasy said more investigation is needed. “For once I’d like to see us do something where we know what we’re doing.”

County Administrator Rebecca Dickson said after the Sept. 1 meeting that VRA would work with the county during the delay and there was no likelihood of the bonds being called.

Dickson reinforced her comments in an email to The Gazette on Labor Day.

“There are sufficient funds in the TCSD operating fund balance to wait on rate increases until FY11,”wrote Dickson.

“What we are working on now is a complete review of the TCSD.  This review should  result in a long term plan for TCSD rate increases in future years…”

“The County and the VRA communicate regularly and the relationship is a good solid one,” she wrote.   “The TCSD is able to make payments on debt service this year and I will be certifying this to the VRA.”     

“What they [VRA] want to know/see is that there is a plan for debt repayment and that the local government is proactively  addressing the  future. We can demonstrate this,” wrote Dickson. 

District 2 Supervisor William E. Quarles Jr. said he didn’t think one public hearing on proposed changes in rates and connection fees was enough.

“I suspect we will hear more by December and take it up during the budget process,” he said.

In the afternoon session the board authorized a $3 million dollar loan to the TCSD from the general fund to pay money that will be due Henrico County for the construction of the Three Chopt 30” water main. The loan will be for seven years at seven percent interest.

The county had anticipated paying for the line, designed to increase the county’s water supply, from TCSD revenues.

But it became apparent earlier this year that money from TCSD would not be available.

A public hearing was set for October 6 to consider appropriation of the $3 million for the loan.