Rounding up, Discontinued, Don’t spend your $ saving yet!
Change the plan, re-negotiate, drop the rates. Coos Bay City Council has spent two Council meetings, July/August 2015, with quality discussion about waste water user fees for high strength sewer users. Coming up, third meeting, will they drop rates for high strength, causing rate increases for all the other rate payers?
Drop one, raise another’s rate? Zero sum game. A fixed amount of revenue is schedule to be receive from waste water rate payers each year. So if one class pays less, another class will pay more, keeping the total funds collected the same.
The funds to be collected are all based upon a 20 year plan of upgrades, capital improvements of sewer plants, replacements to sewer, storm system pipes, and pump repair/replacements.
This plan, voted into law, Winter/spring of 2009 began the 20 year 6.5 percent fee rate increase, compounded for all waste water users each year, funding a 20 year “take down” schedule of projects.
I say change the plan, change the schedule, change, by lowering the waste water fee rates, by extending the 20 year plan to 25 or 30 year plan. This will spread out the cost to users, but still get the goals accomplished.
The only part of this plan that is kept on schedule is the rate increases, flowing money to the City. Money flow is disjoined for the purpose of debt service, primarily for rebuilding Plant #2. It is yet to be permitted. No money has been borrowed as yet, other than 4 million, with 24 million, waiting, wanting to be borrowed for Plant #2 construction.
Coos Bay waste water fee revenue, 2015/16 budget year, produces 5 million plus, covers current loan
There is a potential 7 million saving in current plant #2 inflated cost, rebuild plan, sitting on the table, moving the new plant to the North Spit, doing so creates greater additional future cost savings by piping waste water to the North Spit and abandoning Plant # 1, not doing high cost upgrades.
Extending the plan can spread out projects and lowers the waste water sewer fees to customers. Revamping the Classification current system may be necessary so your commercial high strength users, business, mostly located in Urban Renewal districts of Coos Bay will pay their fair share, along with the rest of us.
Denny Powell
Change the plan, re-negotiate, drop the rates. Coos Bay City Council has spent two Council meetings, July/August 2015, with quality discussion about waste water user fees for high strength sewer users. Coming up, third meeting, will they drop rates for high strength, causing rate increases for all the other rate payers?
Drop one, raise another’s rate? Zero sum game. A fixed amount of revenue is schedule to be receive from waste water rate payers each year. So if one class pays less, another class will pay more, keeping the total funds collected the same.
The funds to be collected are all based upon a 20 year plan of upgrades, capital improvements of sewer plants, replacements to sewer, storm system pipes, and pump repair/replacements.
This plan, voted into law, Winter/spring of 2009 began the 20 year 6.5 percent fee rate increase, compounded for all waste water users each year, funding a 20 year “take down” schedule of projects.
I say change the plan, change the schedule, change, by lowering the waste water fee rates, by extending the 20 year plan to 25 or 30 year plan. This will spread out the cost to users, but still get the goals accomplished.
The only part of this plan that is kept on schedule is the rate increases, flowing money to the City. Money flow is disjoined for the purpose of debt service, primarily for rebuilding Plant #2. It is yet to be permitted. No money has been borrowed as yet, other than 4 million, with 24 million, waiting, wanting to be borrowed for Plant #2 construction.
Coos Bay waste water fee revenue, 2015/16 budget year, produces 5 million plus, covers current loan
There is a potential 7 million saving in current plant #2 inflated cost, rebuild plan, sitting on the table, moving the new plant to the North Spit, doing so creates greater additional future cost savings by piping waste water to the North Spit and abandoning Plant # 1, not doing high cost upgrades.
Extending the plan can spread out projects and lowers the waste water sewer fees to customers. Revamping the Classification current system may be necessary so your commercial high strength users, business, mostly located in Urban Renewal districts of Coos Bay will pay their fair share, along with the rest of us.
Denny Powell
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