Downey : Water Bonds, Rate Hike OKd

The Downey City Council has enacted an ordinance authorizing the sale of up to $12 million in bonds to finance improvements to the municipal water system. The council approved the ordinance on a 4-1 vote last week, with Councilman Roy L. Paul dissenting. The water bonds are scheduled to be issued next month.

To pay the debt service on the water improvement bonds, the council also approved by a 3-2 vote a 25% water rate increase. Paul and Councilman Randall R. Barb voted against the rate hike. The increase will boost the average customer’s monthly water bill from $19.62 to $24.53 beginning Jan. 1, according to a city report.

The water system improvements range from constructing new wells to replacing existing water mains and installing new ones. The system provides tap water for about 75,000 customers in the city. The last rate increase was in November, 1985.

The total bond issue is expected to be $11.5 million. Construction and engineering costs are expected to total $10.4 million. The remainder will pay for the cost of issuing the bonds.