The sewer fund in the spring of 2004 was faced with he following conditions:
1. The existing debt against sewer plant and system was around $9.2 Million.
2. The new debt for the 2003 sewer plant expansion was going to be: $10,770,597.64. The debt service payments for that new debt was going to be $762,682.24 per year.
3. Combining existing debt service payments and operating expenses in 2004 the user fees alone were coming up around $600,000 per year short.
4. The only saving grace was the reserves in the sewer fund was $2,149,261.18.
The plan presented to me and the rest of council to pay for the new sewer plant expansion was to issue at least 200 sewer taps per year. The problem with the plan was that there was not that many sewer taps left for residential lots on the Pickerington Sewer system. The huge reserve the sewer fund had in 2004 was the result of sewer taps being sold in Preston Trails, Windmiller Ponds, and Sheffield/Georges Creek. The growth and sewer service for Fox Glen, Sycamore Creek and Spring Creek were not going to be coming from the Pickerington plant. Since the user fees in 2004 were bringing in around $1,336,108 per year the council would have had to double their rates from $4.50 per 1000 gallons up to $9.00 per thousand. Basically doubling the sewer rates in one year.
What is not in that rate increase above is future capital expenditures required by the EPA and for general maintenance of the sewer plant. So I suspect the council would have had to double the rates and then some. More than likely there would have been enough revenue from tap fees to cover those expenses.
The current plant expansion will cost around $11,275.000. When completed; the total capacity for the city sewer plant will be 3.2 MGD.
Using 2004 dollars the 2003 upgrade would have cost $10,770,597.64. In addition that plant expansion required a lift station and a 30 inch line installed from the east 256 area. The estimates at the time were are around a million dollars.
Clearly the 2003 plant was designed to expand east into the township. We can still do that but at our own pace. The urgency in 2003 with the sewer business and the sewer rights here locally were a free for all. We forged ahead and got a new 208 plan approved by the EPA that establishes the sewer utility provider districts so that we can expand at our own pace to met market demands without worry that the provider next door will raid our areas thus losing our investments into new equipment and plants. We were able to buy that time by working with R.D. Zande to have the sewer plant rated higher from 1.2 MGD to 1.6 MGD.
I am hopeful that in the near future Pickerington can look into some of the new technologies to use the existing plant hardware (aerators, clarifiers, and filters) to get even more capacity out of the plant at much less expense per million gallon capacity.
By Ted Hackworth
1. The existing debt against sewer plant and system was around $9.2 Million.
2. The new debt for the 2003 sewer plant expansion was going to be: $10,770,597.64. The debt service payments for that new debt was going to be $762,682.24 per year.
3. Combining existing debt service payments and operating expenses in 2004 the user fees alone were coming up around $600,000 per year short.
4. The only saving grace was the reserves in the sewer fund was $2,149,261.18.
The plan presented to me and the rest of council to pay for the new sewer plant expansion was to issue at least 200 sewer taps per year. The problem with the plan was that there was not that many sewer taps left for residential lots on the Pickerington Sewer system. The huge reserve the sewer fund had in 2004 was the result of sewer taps being sold in Preston Trails, Windmiller Ponds, and Sheffield/Georges Creek. The growth and sewer service for Fox Glen, Sycamore Creek and Spring Creek were not going to be coming from the Pickerington plant. Since the user fees in 2004 were bringing in around $1,336,108 per year the council would have had to double their rates from $4.50 per 1000 gallons up to $9.00 per thousand. Basically doubling the sewer rates in one year.
What is not in that rate increase above is future capital expenditures required by the EPA and for general maintenance of the sewer plant. So I suspect the council would have had to double the rates and then some. More than likely there would have been enough revenue from tap fees to cover those expenses.
The current plant expansion will cost around $11,275.000. When completed; the total capacity for the city sewer plant will be 3.2 MGD.
Using 2004 dollars the 2003 upgrade would have cost $10,770,597.64. In addition that plant expansion required a lift station and a 30 inch line installed from the east 256 area. The estimates at the time were are around a million dollars.
Clearly the 2003 plant was designed to expand east into the township. We can still do that but at our own pace. The urgency in 2003 with the sewer business and the sewer rights here locally were a free for all. We forged ahead and got a new 208 plan approved by the EPA that establishes the sewer utility provider districts so that we can expand at our own pace to met market demands without worry that the provider next door will raid our areas thus losing our investments into new equipment and plants. We were able to buy that time by working with R.D. Zande to have the sewer plant rated higher from 1.2 MGD to 1.6 MGD.
I am hopeful that in the near future Pickerington can look into some of the new technologies to use the existing plant hardware (aerators, clarifiers, and filters) to get even more capacity out of the plant at much less expense per million gallon capacity.
By Ted Hackworth