Jan-Davis	Esther-Manheimer-DSC 0757
Asheville City Councilman Jan Davis	City Vice Mayor Esther Manheimer

By JOHN NORTH

Asheville Vice Mayor Esther Manheimer and City Councilman Jan Davis vigorously defended Asheville’s ownership of the regional water system during a Feb. 3 breakfast and issues meeting of the Council of Independence Business Owners in Asheville.

The state legislature may make a decision as early as April on whether the system remains in the city’s hands or operates under an independent authority, Manheimer told the CIBO members.

The vice mayor reviewed the city’s viewpoint on why it should retain ownership and control of the water system, while City Attorney Bob Long discussed the legal history of the water system. (Long’s address appears on Page 5).

Davis, who was in the audience, said the city should not re-enter the legal battle over the water system. Instead, he proposed that council resolve to keep the system.

“We need to look where we are today,” Davis said. “The system is better today.”

Manheimer and Davis are the city’s two elected representatives on the task force.

Also addressing the group was state Rep. Patsy Keever, D-Buncombe County, a candidate for the 10th District. She explained why she is running and how she will represent her constituents in Washington, D.C. (See story on Page 4 for Keever’s remarks).

About 75 people — including a number of local elected officials and candidates — attended the early-morning session in the food court at Biltmore Square Mall.

Manheimer, a Democrat, began her talk by noting that the legislature introduced a study bill in 2011 to address the history and current operation aspects of the water system. (The bill was initiated by Rep. Tim Moffit, R-Buncombe County.)

City officials, alarmed at the prospect of possibly losing ownership and control of the water system, sought representation on the task force. “We reached out to Rep. Moffitt, who very graciously responded and met with us. We’re kind of giving you a recap of that meeting,” where both Manheimer and Davis were in attendance.

Manheimer emphasized repeatedly that the city wants to retain ownership of the water system. She also reviewed a report  — from the study committee investigating the Asheville water system. — of a Jan. 23 hearing held in Raleigh.

She said the study commission felt it had three options on the water system ownership issue, including “leave the system as it is,” spin off the water system as a separate independent authority, or merge the water system with the Metropolitan Sewerage District of Buncombe County.

“I personally have the opinion that these are extremely well-run systems today,” Manheimer said, in reference to both the city water system and the MSD. However, she added, “I say — it’s always good to study more.”

Compared to other water systems run by cities around the state, “Asheville is strikingly unique because we have about one-third of the county’s population within the city and the remaining two-thirds out of the city. That is strikingly lopsided compared to other large North Carolina cities. Most have more population in the city than in the county.”

Despite the situation, Manheimer said that the city tax rate “has remained level.” Moreover, Asheville’s property tax rate is “middle to lower,” when compared to other cities in the state.

Since 2005, she said Asheville has borrowed $45 million to make repairs and updates to the water lines.

Following the passage of Sullivan Acts 2 and 3, “legislatively, we can’t charge different rates” to water system customers, which makes the Asheville water system unusual in the state, Manheimer said. That requirement also poses a financial challenge, she noted.

“Under North Carolina law, most cities can charge different rates for city and county,” Manheimer said. Nonetheless, Asheville is allowed to charge different commercial and residential water rates, although all customers in either category must be charged the same rates.

 At present, she said “the ‘outside’ rates are subsidizing the ‘inside’ rates.” According to a report, the water system’s residential rates are higher, while the commercial rates — and those for multifamily homes — are lower. “So our rates” are out of line.

She said the two largest water system users are Mission Hospital, followed by the Buncombe County Schools.

“We are very appreciative of Rep. Moffitt for (allowing) our participation in the discussion,” Manheimer reiterated.