Water rate hike on tap; 1,000 jobs on the line

The City Council is expected to raise water rates 16 percenttoday to avert more than 1,000 layoffs and a reduction in the city'sbond rating.

The long-expected increase will be coupled with a decrease inthe sewer surcharge, officials said, resulting in a slight savingsfor homeowners from a proposal last year by former Mayor Sawyer.

Ald. Edward M. Burke (14th), who is expected to be reinstatedtoday as Finance Committee chairman, said a water fund shortfallcoupled with a deficit of up to $120 million in the city's corporatefund could prompt Wall Street rating services to reduce the city'sbond rating.

"To leave the water fund in deficit would send …