database.yml encoding is utf8, yet connections aren't

$ cat config/database.yml common: &common   adapter: mysql   username: whaaaaaaaaa!   host: 127.0.0.1   encoding: utf8

development:   database: delivery_log_dev   <<: *common

$ ./script/console Loading development environment (Rails 2.1.0)

Delivery.connection.charset

=> "latin1"

Why is the encoding not set correctly? Thanks!