CLINTON — Although Tuesday’s hearing for residents to address Iowa American Water’s proposed rate increases didn’t attract an overflow crowd as it did in 2009, officials from the Davenport-based utility still got quite the earful from Clinton-area residents about the increases.

The request to jump water rates by 16 percent for residential customers would create a hardship on the city’s low-income and unemployed residents, and is unfair compared to the level of improvements seen in the Quad-Cities, they said.

About 40 residents came to the Moose Lodge Hall to address representatives of Iowa American and the Iowa Utilities Board. As was the case in 2009, residents clearly objected to the rate increases. Several residents got emotional as they spoke of severely conserving water and cutting other expenses to bare bones.

“To come up here and plead poverty would be hilarious if we weren’t in the middle of the biggest recession since the Great Depression,” said Connor Anderson, a small business owner who was one of several who drew applause. “To raise rates 16 percent is ridiculous, it’s heinous, it's un-American. When are American companies and shareholders going to start sharing the burden that all of us are sharing every day?”

“All the ones who have spoken, these are the have-nots,” said Irene Vaughn, an 82-year-old Clinton resident who also spoke at a similar hearing in 2009, when Iowa American last requested rate hikes. “Those who can (afford the rate hikes) aren’t here. Have mercy on us.”

Comments by Anderson, Vaughn and the 15 others who spoke will become part of the record that the IUB will use as it considers whether to grant the rate increase, either as proposed or at a lesser amount. A similar public hearing in Davenport is scheduled for Thursday at Scott Community College in Bettendorf.

Iowa American, which filed its rate request with the IUB in April, hopes to use the $5.1 million in revenue to pay for ongoing infrastructure investments, rising expenses related to water treatment and delivery systems and increased operating costs. A typical residential customer using 4,500 gallons per month would pay $35.03 under the proposed increase, or $4.84 more than the current rate.

Randy Moore, president of Iowa American, outlined the company’s largest projects and investments in the city during the past two years, including repair and repainting an elevated storage tank at Eagle Heights, improvements to Well 9 in Clinton (including a building addition that allows for proper containment and success to chemical feed and storage equipment) and small diameter main replacements.

The utility’s investment in its Clinton and Quad-City districts totals about $15 million. About 80 percent of Iowa American’s investments have been in the Quad-Cities, company officials said.

“We realize there is never a very good time to ask for a rate increase,” said Moore, noting programs such as Help to Others (H20) are available to low-income customers. “Iowa American has a responsibility to properly maintain and upgrade our system to provide high quality and reliable service and fire protection to customers and communities we serve.”

Many of the residents, however, didn’t buy the explanation and want the costs to be borne not by them, but by the utility and its shareholders. Several of them also took shots at the quality of the water and customer service.

“We’re all pretty much low income or retired,” said Jean Medinger, who said assistance programs have not been helpful. “I know some people in this audience … try living like us. We’ve been stressed out.

“If somebody’s eating cat food and somebody’s husband is having problems, they’re at bare bones with their finances,” she continued. “You try living like us. And some of you are looking down at the floor when this is going on, so some of you have got guilty consciences.”

Ed O’Neill, a former Clinton city councilman and chamber executive, said that some companies have rejected locating to Clinton because of high utility costs. He also pointed out that 90 percent of those in the crowd fell into one of three categories: working class, retired or unemployed.

“I think it’s really hard for some people to accept the fact that you want a 16-percent increase in profit,” he said, calling the utility out for its comment about there never being a good time for an increase. “This is not the time at all. This is a time for Iowa American to buckle up and tell your investors there’s not going to be a 12 or 13 percent increase in dividends they’re looking for, because they’re going to have to tighten their belts, too.”

Anderson contended that Iowa American can easily pay for the improvements using its own revenue. He said that, by his calculations, quarterly dividends of 22 cents per share to shareholders would be cut by about 5 cents per share.

“You guys can pay for this out of your back pockets,” he said. “I’m sick and tired of American corporations making record profits off the backs of taxpayers (and) socializing their risk.”

Sprinkled in the comments were statements from business owners and non-profit agencies who were asking why sprinkler system rates for buildings are so high, and why the rates are higher for smaller buildings. Rep. Mary Wolfe, D-Clinton, said she has gotten a number of calls from constituents regarding the charges.

Michael Kearney, a Clinton city councilman, explained he owns a 50,000-square-foot building and pays $113.96 per month, but is charged $454 for a 30,000-square-foot building system on the same main. Margaret Kuhl of the Children’s Discovery Center noted that her group has been charged $1,024 annually over the past three years.

“I think it (the sprinkler charges) goes against all public policy in regards to public safety,” said Kearney.

Moore and Iowa American representative Charlie Jones said that fire service rates are not regulated by the utility but by the fire marshal’s office and insurance companies. In addition, the rates are not set by size of the building.

The Office of Consumer Advocate also had representatives at the hearing. Attorney Jack Dwyer explained his office, as it investigates the merits of Iowa American’s request, will be in contact with the IUB to determine issues it should be focused on and resolve differences on the stances.

An evidentiary hearing will take place Nov. 7 in Des Moines, and IUB board member Darrell Hanson said written and e-mailed comments should be submitted prior to then for consideration. The IUB is expected to issue its final ruling on the rate increases by Feb. 29, 2012.

Until the final hearing, Iowa American is requesting a temporary rate increase of about 13.7 percent. A ruling on the temporary increase, to which some residents also objected, is expected by July 28.