News and Opinion from Sisters, Oregon
News and Opinion from Sisters, Oregon
If Sisters voters approve $7 million in revenue bonds for a sewer system on May 19, it will be only the first step toward getting a system installed in Sisters.
Another $5 million in grants will be needed to fully fund the $12.2 million project.
And, according to Robert Raimondi of the Oregon Economic Development Department, grant funds are getting harder and harder to come by.
Raimondi told the Sisters Sewer Focus Group Monday night, April 20, that an election is necessary in May, because grant funds are swiftly drying up; many would not be available after an election held just a few months later.
An affirmative vote is only a first step, but it is a vital one, according to Raimondi. Granting agencies want to know that the city is committed to a project before they commit funds.
"What we're saying here is, once you decide to move forward, we'll do everything we can to secure those funds and fill those gaps," Raimondi said. "(The sewer) is not funded; that's the facts. Even with an approved vote, there's still a lot of work to be done.
"The first piece must be put in place by the community (with a vote)," he said.
Raimondi's caution prompted concerns from citizens that the project could cost them far more than the $7 million at stake in the election.
Engineer Dick Nored, designer of the project, assured the group that $7 million was the maximum debt the city would take on.
"We can't build the project without the grant program," Nored said. "So we're going to work until we get the grant money. We'll get the grant money one way or another, or we won't build the project."
Securing grant funds is part of HGE Engineering's role in the project.
Nored explained the proposed sewer rate package to the focus group. He emphasized that the city council still has to design and approve a final rate structure, with input from the users in the community. That will happen if the May 19 ballot measure passes.
The proposed rates are based on Equivalent Dwelling Units (EDU), measured by average March water usage to exclude lawn irrigation. In the proposal, all residences are treated as a single EDU; commercial users and apartments who use more water are multiple EDU.
Nored explained that, for residents, the cash outlay is $1,000 for hook-up and $33 to $39 per month for sewer fees. Decommissioning septic tanks and excavation and associated costs are included in the overall cost of the project.
Nored noted that the fee could go as low as $33 per EDU per month if all the grant money comes through as hoped, but the council has capped the rate at a maximum of $39/EDU/month.
The council could decide to fine-tune charges based on actual water usage. Residents who use more than one EDU would pay more; those who use less would pay less. So far though, the council has indicated that the charges would be based on one-residence/one-EDU.
Commercial users who have multiple EDU would be charged $1,000 per EDU in "hook-up" fees, and pay $33-$39/EDU/month.
A business that uses 20 EDU in water would pay $20,000 in "hook-up" fees and $660-$780 per month in sewer charges.
Focus group member John Tehan, co-owner of Hotel Sisters, noted that the "hook-up" charges for multiple EDU users are way more than the actual cost of connection. He argued that they amount to a systems development charge on existing commercial businesses.
Nored acknowledged Tehan's point, and explained that the charges were designed to pay for the extra impact multiple users have on the system.
Mayor Steve Wilson told The Nugget that he sees the problem as a simple formula:
The system has finite capacity, Wilson argues. A single 20-EDU user displaces 20 single family users from the system. That has to be paid for by whoever is making the impact, Wilson contends.
Jim Cornelius is editor in chief of The Nugget and author of “Warriors of the Wildlands: True Tales of the Frontier Partisans.” A history buff, he explores frontier history across three centuries and several continents on his podcast, The Frontier Partisans. For more information visit www.frontierpartisans.com.
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