News and Opinion from Sisters, Oregon
News and Opinion from Sisters, Oregon
The effluent is flowing just like it should through Sisters' new sewer system. Cash flow is another matter.
The project is $402,496 short of cash to complete the hookups in the commercial core and residential areas. However, city officials say the cash flow problem won't delay the project.
According to Mayor Steve Wilson, the shortfall is attributable mostly to the city having to commit $396,000 in anticipated connection fees at the beginning of the project to match an Oregon Economic Development Department grant.
The problem is that the city can't collect that money from customers until the connections are actually in place. The connections are moving along at a good clip, but the job is still a long way from being finished.
On top of that, many residents and businesses are paying their connection fees in installments, slowing down the cash flow even further.
The city will juggle funds to avoid slowing down the project. According to engineer Dick Nored, budgeted engineering and administration dollars have not been spent, so those funds can be used to cover project activities until more connection fees come in.
Additionally, the city still expects to receive $250,000 in "developer contributions" from The Pines and Pine Meadow Ranch as soon as the legal work is hammered out on an agreement between the developers and the city.
Cash flow isn't the city's only problem. The project is still about $300,000 short of funds for Phase IV -- bringing the Sisters Industrial Park into the system. The total bill for Phase IV is estimated at $800,000.
According to Wilson, the shortfall developed when bids on Phase I and Phase II came in over engineer's estimates.
Wilson signed new grant applications for up to $300,000 on Thursday, June 7. The city has a $500,000 grant for Phase IV. The city must come up with its $300,000 portion this summer or it will lose the grant.
"We have to be ready to go out for bid (on Phase IV) by the end of September -- and we will be," Wilson said.
If the city can't secure additional grants, other options will be explored, according to Wilson. But none of those options will push the monthly rates over $39 per month per equivalent dwelling unit.
"That's non-negotiable," the mayor said.
However, with all the wiggle room used up in the budget, financing for the sewer is "still going to be squeaky tight," Wilson said.
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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