The Daily Alaska Empire

CITY WATER RATES NOT TO BE BOOSTED NOW SAYS COUNCIL

There will be no increase in Juneau's water rates at present.

This decision was made by the City Council at its meeting last night, after it had heard the report of C. J. Ehrendreich, certified public accountant, who had examined the Juneau Water Works' financial statement.

The Water company will be notified that no increase in water rates will be allowed until an audit has been made of the Water company's books.

Ordinance Number 306, under which the Water company is allowed its 20-year franchise, states that rates shall be fair and reasonable.

Ehrendreich, speaking from the floor, told the council he could see no justification for an increase.

He said that, judging from the statement, before a "management fee" not included under wages, is deducted, the company's net profit amounts to more than 21 per cent.

Although the Water company has already notified its customers of an increase in rates as of September 1, the council moved that the company would be notified not to increase rates until such time as an increase is justified.

A new city ordinance, providing rules for city elections as made necessary by the recent special municipal election, was given first reading at the council meeting.

The assessor's report, with the changes made by the Equalization Board, was accepted by the council.

Bids for comprehensive liability and property damage liability insurance were opened, and the Shattuck Agency bid was accepted.

A representative of citizens residing in the Seventh and Eighth Streets region was promised that difficulties in sewer and water systems in that area would be ironed out as soon as possible.

In the course of the meeting, Mayor Waino Hendrickson pointed out that the change-over, made necessary by the Territorial law which moved the municipal election dates to October 4, would prove difficult at present, but beneficial after the change-over has been made.

"We will have operated for 18 months on one year's income," he said.

Representatives from Douglas City Council asked the Juneau City Council to give its approval of the plan for a small boat harbor at Douglas. No action was taken on this matter.