Editorial: Keep a lid on rate hikes

Most pension checks are fixed and Social Security increases hover around 3 percent annually, so it’s no wonder then that older people, particularly, get upset when their local government agencies go hog wild when increasing rates for basic services.

Oak Harbor City Council was slated to raise most utility rates by 12.9 percent in action that was scheduled to take place last night. Meanwhile, Island County commissioners will decide March 12 whether to raise solid waste rates across the board, and as high as 48 percent for someone dumping a single garbage can at one of the recycle parks.

The routine is to hire a consultant to come up with good reasons why the additional revenue is needed, and then to follow the consultant’s recommendations and raise the rates.

Wouldn’t we all like to operate like this? Any small business would love to hire a consultant to figure future capital needs and revenue targets, and then come up with an appropriate pricing scheme. Or individuals would jump at the chance to hire someone to predict future housing, education, vacation and retirement needs, and then bill their employer accordingly. The only problem is that in the real world, the business customer would not pay the price, choosing instead to do business with a competitor with less grand plans for the future and therefore lower prices. Or the employer would simply laugh at the employee’s demands, or even fire them for being so unrealistic in their outlook.

Unfortunately for utility users, there is no competitor. Government either has or allows monopolies on sewer, water and garbage service, although in the latter area a few people get around price increases by dumping their garbage along county roads or on private property. Radical price increases just make that problem worse.

It’s because of government’s monopoly powers that our elected representatives have a special obligation to represent the people, not outside consultants or city or county employees. Can folks really afford a 12.9 percent increase in basic water and sewer services, or even more in the case of household garbage? In many cases the answer is no, and these are the otherwise voiceless people our elected officials should represent.