The decision on creating a new water district for public water in Bethany is really up to residents of the proposed district, Eric Wies told about 300 people at a meeting at Bethany Town Hall on Monday evening.
Wies is a senior associate with Clark Patterson, the consultant on the proposed project.
The Town of Bethany has created prior water districts but this would be the largest one, as District #5, so far, with 28 miles of pipe installed to deliver water to the equivalent of 500 water customers.
The estimated total cost of the project is more than $13 million. The direct cost to residents in the proposed district can be reduced if the USDA determines the median income in the district is low enough, which would enable the district to qualify for a low-interest loan and about a $2 million grant.
Breaking down the cost per water customer, Weis said the calculation begins with determining an "equivalent dwelling unit" (EDU). An EDU is one household with one family. There is a usage formula to determine costs for commercial users.
Multi-family units are calculated based on one EDU for the first family and a half an EDU for each additional family.
There are approximately 500 EDUs in the proposed district.
Customers who hook into the public water will pay a quarterly fee to the Monroe County Water Authority, plus their share of the debt for installation of the infrastructure.
The most optimistic calculation is $1,000 per EDU per year. The most conservative estimate, Wies said, is a bit more than $1,100 per year.
A typical EDU in Genesee County uses 63,000 gallons of water a year. The current Monroe rate is $2.43 per gallon, plus a base charge of 21 cents per gallon. There is a Genesee County surcharge of 60 cents per gallon but the rate will go up to $1.20 per gallon.
At those rates, the average EDU will pay to MCWA a total of $386.34 per year. (NOTE: See clarification below)
"You've really got to do the math and your own evaluation," Weis said.
Only those residents and businesses that connect to public water will pay for water.
But all property owners in the district will be in debt necessary to build the infrastructure.
Currently, residents in the proposed district are being asked to complete an income survey. If the district qualifies as low income, the USDA will provide the district with a low-interest loan and a $2 million grant. Genesee County will also pay $4.5 million of the cost.
The balance of the $13 million cost will need to be financed.
The estimated debt service under this scenario is $519,910.
The loan would take 30 years to pay off but the responsibility for repayment is attached to the property not the property owner.
Each EDU's share of the annual debt payment would be $631.87.
These numbers are just estimates and if the USDA doesn't provide a low-interest loan and grant, the costs would go up slightly.
Given the topography of the district, the infrastructure requirements include two water storage tanks and two pumps.
Residents with well water would either need to cap off those wells or install a backflow system to block backflow of well water into the public water lines. The cost of backflow blocks and connection to the public water line are the responsibility of the property owner.
UPDATE: After comments about the rate calculation, we contacted Eric Wies and asked him for clarification. Here is what he provided:
MCWA
- $0.21 per day x 365 days = $76.65
- $3.43 per 1,000 gallons x 63,000 gallons = $216.09
Genesee County
- $1.20 per 1,000 gallons x 63,000 gallons = $75.60
Total Annual Water Cost = $368.34
The water rate maths (see the
The water rate maths (see the paragraph beginning with 'A typical EDU in Genesee County') don't appear correct. Specifically, $2.43 per gallon times 63,000 gallons per year adds up to rather a bit more than $386.34 per year. (Alternatively, assuming that the rates are meant to be per thousand gallons, $2.43 + $.21 + $1.20 per thousand gallons per year times 63 thousand gallons gives $241.92 per year.) Howard, would you be so kind as to verify the rates and calculations?
Good catch, Kevin.
Good catch, Kevin.
The "reported" rate of ($2.43 + $0.21+ $0.60) per gallon would mean a typical EDU (using 63,000 gallons per year) would be paying $204,120 for their water.
Cripes! It doesn't take a genius to figure that, at just $1 per gallon × 63,000 gallons equals $63,000.
Somebody fell asleep at the keyboard, me thinks.