Lakeland Regional Sewer District To Request Additional Funding
Lakeland Regional Sewer District held a special session Thursday night at the North Webster Community Center, passing a motion to pursue additional funding from the U.S. Department of Agriculture Rural Development.
The initial loan of $23.8 million, received in 2010, fell approximately $4.1 million short of the final cost, calculated after receiving construction bids in December. However, the district is now eligible for a grant that was denied prior to the release of the 2010 census, showing the district does fall into the low income category required.
Further consideration will be required as to whether the board will ask for 45 percent of the total project cost or 100 percent of the overage.
The four members of the board present: President Jim Haney, Mike DeWald, Bob Marcucilli and Bob Sanders voted unanimously to pass the motion, with some trepidation on the part of Sanders, who nevertheless agreed “we have to proceed.”
Time has become a critical factor because, as Haney pointed out, everyday the board delays, the later construction can begin, and the district could lose the loan if construction is not completed by the end of 2016.
Jeff Rowe of Umbaugh and Associates was on hand to advise the board, providing a rough draft of cost projections not made available to the public. However, the total estimate, based on projected rates, maintenance and replacement costs and collection system and waste treatment plant administration is $543,000 per year.
Some concern was expressed about the 5 percent allowance built into Umbaugh’s projections, which most agreed was too low, as it was based primarily on delinquencies and tear downs of existing structures. But the allowance failed to take into account the significant number of campgrounds in the district, which would be on a metered rate and providing income primarily in the months of June, July and August only.
Further discussion centered around the possibility of programs to help those unable to meet connection costs, monthly bills. Rowe believed that, ultimately, other customers would have to make up the difference.
During public comments, Ralph Marcucilli commended the board for their efforts and emphasized it is important to “move forward as expeditiously as possible.” He added in the current “regulatory environment” costs will only go up in the future.
Haney ended the meeting by saying more special meetings would be necessary to discuss use rates and use ordinances. These meetings will be held in February and March with no fixed date announced at this time.