Wednesday, December 10, 2014

A Tale Of Two Counties

Clallam County and Mason County

TWO SEWER SYSTEMS GOING FOR BROKE.

 

By now you have all heard about the county's plan for a sewer system in the Carlsborg UGA and how it will be good for businesses and keep the groundwater safe and promote "growth".  Well this sewer will serve 213 residences and 113 businesses, that's a total of 326 hookups, potentially, at an "estimated cost of $17 million" (PHASE 1).  We haven't seen the "growth" in Carlsborg and businesses are closing or laying people off (like much of the county is) including our county government. One only needs to read recent news article where our county commissioners state how they are laying off, or cutting wages of county employees  more than 40 full-time-equivalent employees have been cut from the county's staff and how "working age" and "school age" population within the county is decreasing and it appears it is getting "increasingly harder for the working-age population to make it here and that is not conducive for economic growth." To see what I say is true click the link below.


Remember when the PUD #1 of Clallam County backed out of the project because it was "financially infeasible"?  Then the county stepped in and took over the $10 million Public Works Trust Fund Loan at a cost of $513,000 annually for the next 20 years from the "Opportunity Fund", not to mention the $402,180 in county subsidies, all at tax payer expense.  Wait, they said it won't burden taxpayers.  Right?  Well not so fast there, The opportunity fund, where the money comes from, is taxpayer funded, RCW 82.14.370 provides eight-tenths of 1 percent sales tax to be returned to certain counties to be used for construction of public facilities that promote economic development.  Subsidies are from the county general fund.

"There are numerous community projects that may be worthy of taxpayer funding."


So much for not impacting taxpayers.  Anyway, this sewer system still remains "financially infeasible" and may cause some to lose their homes and or businesses due to the costs of connection charges and monthly fees, and why is that? Because the average age in Carlsborg is 60.3 years and the average annual income per household is $27,000, about half the average of Washington State. 

 The overstated benefits do not outweigh the real and actual financial risks involved, as Mason County has found out.  These comments should sound familiar as we have heard them all before here in Carlsborg and Clallam County.

BELFAIR HERALD
Thursday, August 2, 2007 Section of The Shelton-Mason County Journal
County moves forward with UGA sewer work

"The action will set in motion plans for a sewage system for Bel-fair intended to reduce pollution
of the fragile saltwater system of Lower Hood Canal and combat water-Quality impacts of additional
development."  "Belfair resident and builder Jack Johnson told the commissioners his main concern was to get the sewer built."

"with $26 million in approved funding, could go beyond the limits of the collection system in the current plan". "'One of the problems we have with Belfair is most of the soil is classified soil,"

Commission Chair Lynda Ring-Erickson noted that while it's important to keep rates down, the
fragile nature of the Belfair area made it most important "that we connect people to sewers to maximize our opportunity to protect the canal while we allow development in the UGA. We want as many people to hook up as can," she said, "at a rate people can afford.

Is any of this sounding familiar yet?  It should. Let's continue.

Sheldon said today's public-works project costs are "staggering." "To have a project where
we have millions of dollars in grant funds is really a blessing," he added. "As we continue on with
the Puget Sound Partnership, we are hopefully going to be able to find some more low-cost money
and grant funds."

IN THE FALL of 2006, the Western Washington Growth Management Hearings Board found the county to be out of compliance with the Growth Management Act by including insufficient regulatory control in the Belfair and Allyn urban growth areas over on-site sewage disposal systems. Tuesday's action will enable the county to meet the state's August 6 deadline for compliance and eligibility for project funding.

"Out of compliance" just like the Carlsborg UGA had been in 2008, but hey we fixed it just like Mason County did with a "SEWER SYSTEM PLAN". Yeah that fixed it real well alright, Cut to the chase and we move on to 2011 and the COSTS.  Careful, don't spray your coffee on the monitor, put the cup down before you get a look at these figures.


 Shelton-Mason County Journal
Thursday. March 31, 2011
Sewer planners look for more interest, data
By ARLA SHEPHARD

Costs for residents to connect will be $3,000, not including the cost to construct a side sewer (anywhere between $3,000 and $8,000, depending on whether one hires a contractor, pays the county to do the work. or does the job themselves) or the monthly rate of $96 once they're hooked. in. 
 
See the foot notes of the Carlsborg Sewer Financial Plan, it says the same thing.

Businesses will need to pay more based on their number of Equivalent Residential Units (ERUs), or the amount of water or sewage they use comparable to a residential single-family home.

Carlsborg business owners should take special note of this one. OUCH!  It'll cost ya.

For example, if Jimmy D's Restaurant in Belfair has six ERUs, planners said, the busineu owner
would pay $18,000 to connect and $676 a month in sewage bills. According to the data they've
collected so far. planners estimate that the highest usage in Belfair is a business that uses 45 ERUs,
which translates to a monthly bill of $4,32O.  For businesses, ERUs are typically calculated based on water usage data,
 
Planners also encouraged residents to express whether they had an interest in allowing the county
to do their side sewer work, which could bring down those construction costs overall.

Come on, get connected, in the early phase, we'll save you money Kind of hard to save you money that you don't have in the first place, oh right I forgot, they can get you a "low interest LOAN".

Audience members commented that the project adversely affects older, poorer residents 
They can't afford this kind of stuff,"
"What if this is a person that's 90 years old and doesn't have 30 years to pay off the $30,000 it's going to cost them to hook into the sewer system."
Dobey corrected Skeeters-Lindsey on the connection costs and assured her that project planners
were willing to work with residents to help them obtain federal and state grants and loans.
"We've tried to make accommodations through grants, loans ... we know this is an economically depressed area."

See I told you so. Help to obtain a grant or loan.  At what interest rate? "We know it's an economically depressed area," but we're gonna do it anyway. On to 2012 and into debt.


Shelton-Mason County Journal 
Thursday, Oct. 25, 2012 
At least 10 percent of county sewer bills overdue, officials say
By NATALIE JOHNSON
natalie@masoncounty.com

Much attention has been given in the press, public meetings and elsewhere in Mason County to the
expense and drama of the construction of the Belfair sewer and wastewater treatment plant.
However, Mason County also runs the Belfair sewer's three baby cousins, the North Bay sewer
in Allyn, the Beard's Cove sewer south of Belfair and the Rustlewood sewer, just south of Grapeview, which are experiencing problems of their own.

Currently, between 10 and 15 percent of connections in the county's water and sewer systems are significantly behind on their bills, said Tom Moore, director of utilities and waste management for the county.

There are 160 lots with infrastructure for sewer in Rustlewood, a community
off State Route 3 on Krabbenhoft Road. About 130 of those lots have homes that are connected to the sewer.  Of those 130 connections, 26 are more than $200 behind on their water/sewer bills. Another 13 owe more than $100 in back payments to the county.

Seven properties are more than $1,000 in the red. The most any single ratepayer owes is $6,289.
In all, 30 percent of the Rustlewood sewer's 130 connections are behind on payments, amounting to
nearly $36,000 in delinquent rates owed to the county.

In Rustlewood, rates delinquent past 90 day amount to 13 percent, or $25,201 of its $205,827
budget. In comparison to Rustlewood, delinquent rates 90 days make up 6 percent or $10,549 of the Beard's Cove budget, and 10 percent or $137,665 of the North Bay sewer budget.

I would suppose that these "commissioners" and "utility directors" and "planners" didn't listen to their citizen either.  If one can't afford $96.00 per month extra to pay for sewer what makes them think they can afford $200 or $300 per month?  ARE YOU LISTENING CLALLAM COUNTY?  Let's see what happens in 2013.


 MASON COUNTY JOURNAL
Thursday, April 11, 2013
Belfair sewer heading for the red County weighs rate increase, subsidy
By NATALIE JOHNSON
natalie@masoncounty.com

Mason County might need to nearly triple sewer rates for Belfair customers to avoid putting the Belfair Wastewater Utility in the red. According to county staff, projected revenues for the utility are
expected to be 40 percent less than expenditures next year.

"It's a mess and I don't have the answer," said Brian Matthews, public works and utilities director, calling the sewer utility "a turd".

John Cunningham of the county utilities and waste management department said by the end of 2013, the Belfair Wastewater Utility's deficit is expected to be $593,000 and the total fund deficit between 2013 and 2026 could reach $10.7 million.

"You can close the gap by raising rates to $300 per month right now," Cunningham said.

Are you worried yet?  You should be because it gets worse.  Let's continue.

The total cost  of the sewer is estimated to be between $46.5 and $47 million.  Between a general obligation bond sale and other loans the county owes $14,925,199 on the project.

If the utility can't make payments on the general obligation bond used to construct the sewer system, the county's general fund has to cover the cost, staff said.

"If (the utility) goes bankrupt everybody is going to be paying the cost and in a big way," Mathews said.  "I'm losing sleep over it."

These estimates only take into account Phase 1 of the sewer in the downtown core of Belfair.  Subsequent phases have been put on hold.

Just think of the Carlsborg Sewer "Initial Sewer System"  as "PHASE 1", because that's exactly what it is.  There is a "phase 2" and "phase 3". UH OH!

When building the sewer, the county anticipated growth in the Belfair Urban Growth Area (UGA), of at least 5 percent per year. The sewer was designed with that kind of capacity in mind.

Now, Neatherlin said the UGA is lucky if it has 1 percent growth per year.

The sewer currently has about 400 . connections - 1 percent amounts to four sewer hookups per year, or about $4,000 annual revenue for the county, staff said.

In order to avoid operating in the red and allow the utility to continue making debt payments, county
staff prepared several options to increase funding.  One of those options is to increase the current sewer rate of $96 per equivalent residential unit (ERU) to as much as $242 per month per ERU. 

See, I told you it gets worse and who gets to pay and pay? The end user, the home and business owners.  Believe me, it will get even worse, you'll see.

Both Neatherlin and Jefferys raised concerns over this option, saying the current sewer rate is already
a hardship on residents, and a higher rate could drive businesses to places with lower sewer rates,
such as Silverdale.

During a phone conversation yesterday, Sheldon suggested partnering with the City of Shelton for operating costs, because the city also has a wastewater treatment plant and a reclaimed water facility.

Does this sound familiar? Carlsborg partnering with Sequim because they have a wastewater treatment plant and reclaimed water facility.  Then comes the county subsidies just like Clallam County.

Another option is to subsidize the sewer system with $600,000 from the county's general fund in
2013, and extend this subsidy potentially through 2026 for a total of as much as $5.2 million. Sheldon said he hopes the county can look at refinancing some of its debt on the utility.



Staff and commissioners said the County needs economic recovery and commercial development
in the UGA to effect a long·term, manageable solution to the funding problem.
"I do think that our rate of new hookups will increase as the economy improves," Sheldon said

He said a Washington state Department of Transportation project to Widen state Route 3 through Bel.
fair, scheduled to begin as early as this summer, could bring new businesses, and sewer hookups, to the area.

If we build it they may come seems to be the mantra of these two counties, or is it GO FOR BROKE.