[Vision2020] Hawkins Water & Sewer Agreement: feedback from water dept

[Tom Ivie]

Who pays for the administrative costs? I ask because those didn't seem to be listed.

Garrett Clevenger <garrettmc at verizon.net> wrote:  I spoke with Don Palmer from Moscow's Water Dept.
regarding Hawkins and want to share with you what he
said. I hope I convey this accurately.

First, he said income from water/sewer services pays
for the infrastructure, operating costs and other
costs. In other words, all rate-payers contribute to
the upkeep of the system. There is no outside revenue
beyond what the rate-payers pay. The city has a $10
million sewer bond that is paid for by income from
rates charged by the city. So anybody who pays into
the sewer fund, including Hawkins if this happens,
will be paying for the bond. Any future bonds will
probably have the same payment system where all rate
payers pay the bond.

There are no other agreements the city has
guaranteeing water and sewer services indefinitely to
any other entity. Hawkins will be the only one to
receive this contractual guarantee of services.

There are districts that receive water and sewer
services that pay double what "normal" rate payers pay
in order to cover costs of extending services to those
districts.

Hawkins will be paying for infrastructure needed to
reach the border.

Don was skeptical that Moscow can charge a "premium"
rate to Hawkins. The city is not allowed to profit on
water it sells. Apparently, the rates Hawkins is
charged cannot be greater than the costs to supply
that water (including costs to supply water to the
rest of Moscow, so they wouldn't be paying less then
other rate-payers)

He wasn't sure what the rates Hawkins would be
charged.



Since Moscow can't profit off of the water it sells to
Hawkins, I wonder how the city will justify charging a
"premium" price to Hawkins. The others who pay twice
the rate are charged that to pay for extension of
services. Since Hawkins is paying for those
extensions, it doesn't seem that the city would be
justified to charge twice the amount, let alone the 3
times that has been reported.

Garrett

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Tom & Liz Ivie
       
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