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

[Garrett Clevenger]

Tom Ivie <the_ivies3 at yahoo.com> wrote:

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


>From what I remember, all rate-payers pay for all
costs associated with the water dept and sewer dept,
including admin costs.  The two depts' funds are
separated, so there is no co-mingling of funds, but
they are able to pay for all their costs through
rate-payers.

Hawkins has been guaranteed 1% of Moscow's current
water use.


I also want to thank Chas for letting me know his
comments that I took offense to that I responded to
earlier were not directed at me.

Garrett

> 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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