Syracuse Water Rates May Be On The Rise
July 28, 2016 at 4:25 p.m.
SYRACUSE - No members of the public appeared Tuesday at the Syracuse Town Council public hearing on the water treatment and storage facilities preliminary engineering report.
If they had, they would have learned that, based on estimated project costs and with no additional funding, a monthly water bill for a five-eighths-inch meter, 5,000 gallons, may increase from approximately $14 to approximately $31. Sewer rates and property taxes will not be affected, however, under the report presented by Greeley And Hansen.
John D. Julien, CPA with H.J. Umbaugh & Associates, financial consultants for Syracuse on the project, said that based on the numbers he has, which are four years old, Syracuse's current water rates are below average. In the worst case scenario, he said, the project will move those rates past average and toward the high end compared to other towns like Syracuse, but every municipality is at a different stage with their water treatment plants.
Another way to look at it, Julien said, is that if the town applies for funding from the Department of Commerce, they will look at Syracuse's application unfavorably because Syracuse's rates are so low.
"From their perspective," he said, "your rates aren't too expensive."
Previously, Julien said, they recommended the town gradually phase in higher rates. That also will help down the road because the town will have to borrow less, he said.
According to Greeley And Hansen's preliminary engineering report, Syracuse's 2000 population is 3,038 and is estimated to be 4,033 in 2020. Average daily flow is 300 gallons per minute with a maximum daily flow of 650 gpm, but is estimated at 400 gpm and 800 gpm, respectively, in 2020.
The current water capacity of the Dolan Well is 400 gpm, compared to 435 gpm originally; 800 gpm at the Vega Well; and 300 gpm currently at the Dana Well, compared to 430 originally. The aerator at the Dolan Well is beyond the service life as are the high service pumps, and the pressure filter is at insufficient capacity to meet the current needs.
Part of the water treatment recommendations by the engineers include constructing one 800-gpm water treatment facility on a new site, providing standby power in the event the power to the facilities is somehow interrupted and demolishing the existing water treatment facility. Recommendations for water storage include constructing one 500,000-gallon elevated storage tank on the new site and demolishing the south water storage tank.
Benefits of the recommended plan, according to Greeley and Hansen, include reliable and adequate water volume and pressure; treated and filtered water to all of the town's wholesale customers; replacement of aging equipment; minimized costs to rate payers; qualification for low-interest state revolving fund financing; meeting current regulatory requirements; and providing a localized and expandable facility capable of more expansion.
Total estimated construction cost is $3.95 million plus a 10 percent contingency fee and $820,000 in nonconstruction costs, for a total project cost of $5.165 million.
Project financing could include money from the state revolving fund loan program, supplemental drinking water and wastewater assistance fund, available town funds and water user fees.
The 10-day public comment period for the report began Tuesday and runs through July 8.
In another matter, the town council approved the mutual aid agreement with Kosciusko County Emergency Management. The approval is with the understanding the town manager will serve on the KCEM joint board under the direction of the town council, and the town council president, at the direction of the town council, is the person who can request aid from KCEM.
Ed Rock, KCEM director, said with the agreement, when a disaster occurs, the county can add its damage with the municipalities who are part of the agreement to get federal assistance, where separately the amounts may not reach the federal threshold to qualify for financial assistance.
The document kicks in only when the disaster "is too great to handle without assistance," Rock said. The county will not take over the town's equipment and vice versa, he said.
When the county then receives federal aid, it probably will come through Rock's office, which will divide the money. KCEM is under the State Emergency Management Agency, which is under the Federal Emergency Management Agency.
Town councilman Larry Siegel asked if the agreement obligates Syracuse in any way. Rock said there was no financial obligation that he saw and he anticipates that all the towns in the county will participate. Warsaw and Mentone already have signed their agreements.
"I think it's to our advantage to have this agreement," said Carol Koble, town councilwoman.
Members of the town council are Paul Stoelting, Carol Koble, Barbara Carwile, Bill Hane and Larry Siegel. Their regular meetings are at 7 p.m. in the town hall on the third Tuesday of every month. [[In-content Ad]]
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SYRACUSE - No members of the public appeared Tuesday at the Syracuse Town Council public hearing on the water treatment and storage facilities preliminary engineering report.
If they had, they would have learned that, based on estimated project costs and with no additional funding, a monthly water bill for a five-eighths-inch meter, 5,000 gallons, may increase from approximately $14 to approximately $31. Sewer rates and property taxes will not be affected, however, under the report presented by Greeley And Hansen.
John D. Julien, CPA with H.J. Umbaugh & Associates, financial consultants for Syracuse on the project, said that based on the numbers he has, which are four years old, Syracuse's current water rates are below average. In the worst case scenario, he said, the project will move those rates past average and toward the high end compared to other towns like Syracuse, but every municipality is at a different stage with their water treatment plants.
Another way to look at it, Julien said, is that if the town applies for funding from the Department of Commerce, they will look at Syracuse's application unfavorably because Syracuse's rates are so low.
"From their perspective," he said, "your rates aren't too expensive."
Previously, Julien said, they recommended the town gradually phase in higher rates. That also will help down the road because the town will have to borrow less, he said.
According to Greeley And Hansen's preliminary engineering report, Syracuse's 2000 population is 3,038 and is estimated to be 4,033 in 2020. Average daily flow is 300 gallons per minute with a maximum daily flow of 650 gpm, but is estimated at 400 gpm and 800 gpm, respectively, in 2020.
The current water capacity of the Dolan Well is 400 gpm, compared to 435 gpm originally; 800 gpm at the Vega Well; and 300 gpm currently at the Dana Well, compared to 430 originally. The aerator at the Dolan Well is beyond the service life as are the high service pumps, and the pressure filter is at insufficient capacity to meet the current needs.
Part of the water treatment recommendations by the engineers include constructing one 800-gpm water treatment facility on a new site, providing standby power in the event the power to the facilities is somehow interrupted and demolishing the existing water treatment facility. Recommendations for water storage include constructing one 500,000-gallon elevated storage tank on the new site and demolishing the south water storage tank.
Benefits of the recommended plan, according to Greeley and Hansen, include reliable and adequate water volume and pressure; treated and filtered water to all of the town's wholesale customers; replacement of aging equipment; minimized costs to rate payers; qualification for low-interest state revolving fund financing; meeting current regulatory requirements; and providing a localized and expandable facility capable of more expansion.
Total estimated construction cost is $3.95 million plus a 10 percent contingency fee and $820,000 in nonconstruction costs, for a total project cost of $5.165 million.
Project financing could include money from the state revolving fund loan program, supplemental drinking water and wastewater assistance fund, available town funds and water user fees.
The 10-day public comment period for the report began Tuesday and runs through July 8.
In another matter, the town council approved the mutual aid agreement with Kosciusko County Emergency Management. The approval is with the understanding the town manager will serve on the KCEM joint board under the direction of the town council, and the town council president, at the direction of the town council, is the person who can request aid from KCEM.
Ed Rock, KCEM director, said with the agreement, when a disaster occurs, the county can add its damage with the municipalities who are part of the agreement to get federal assistance, where separately the amounts may not reach the federal threshold to qualify for financial assistance.
The document kicks in only when the disaster "is too great to handle without assistance," Rock said. The county will not take over the town's equipment and vice versa, he said.
When the county then receives federal aid, it probably will come through Rock's office, which will divide the money. KCEM is under the State Emergency Management Agency, which is under the Federal Emergency Management Agency.
Town councilman Larry Siegel asked if the agreement obligates Syracuse in any way. Rock said there was no financial obligation that he saw and he anticipates that all the towns in the county will participate. Warsaw and Mentone already have signed their agreements.
"I think it's to our advantage to have this agreement," said Carol Koble, town councilwoman.
Members of the town council are Paul Stoelting, Carol Koble, Barbara Carwile, Bill Hane and Larry Siegel. Their regular meetings are at 7 p.m. in the town hall on the third Tuesday of every month. [[In-content Ad]]