Township looks to utilities for independence

CADILLAC - For Haring Township, independence begins with utilities.

The township is planning to build a wastewater treatment plant and expand its municipal water system to service its core commercial and residential areas. Plans years down the road in the minds of township planners were accelerated when Baker College posed an Act 425 Agreement between the township and the city of Cadillac.

“If we want to continue to grow, to keep the township whole, we will have to become completely independent,” said Haring Supervisor Bob Scarbrough.

Much of Haring's commercial sector is already serviced by sewer with the waste going to the city's plant on Plett Road. However, the agreement which allows for the shared utility is set to expire in 2017.

Talks of renewing the plan are not likely to bear fruit.

“There has been discussions on and off over the past few years,” said Cadillac City Manager Pete Stalker. “The problem we have is the districts have been there so long that people have benefited from the sewer without paying full city taxes.”

Essentially, without a 425 Agreement, urban growth boundary or annexation, the city will not provide services. All three agreements allow land to transfer. Except for the annexation option, taxes are shared for a fixed period of time.

The option does not sit well with Haring. The main concern is that once, for example, Baker College goes, the surrounding residential homes will follow and the trend will continue into the future.

Sewer plant

Haring's consultant, Moore and Bruggink CEO Gary Voogt, put together an informational packet detailing both plans and funding options. Haring expects to have the matter on the Oct. 9 agenda, Scarbrough said.

First, Haring has purchased a 20-acre site and intends to add 20 more acres. The site is more than large enough to accommodate the plant and a large drainfield.

The plant itself is expected to cost $2.4 million. Connecting to existing sewer infrastructure is estimated at $366,000 and connecting to Baker, $483,000. With bonding costs of $48,832 added in, the total is $3.36 million.

Voogt recommends a special assessment district for benefited property owners. If it generates $365,000, the total financing will be $3 million. The annual payment is estimated to be $240,720 at 5 percent over 20 years. Operating the system is expected to cost $161,000 yearly.

Water expansion

Haring has provided water to its businesses and residents since 1983 and expanded its system several times since then.

The new plan is to provide water to the Plett Road and 13th Street area to be utilized by Baker, the future YMCA and the intermediate school district.

Plans would unfold in three phases, with the first servicing the college area at an estimated cost of $1.26 million. The next two phases are expected to cost $254,000 and $589,000.

If in phase one, the three entities were to pay for the watermain, it would reduce the cost by $330,000. With bonding costs, Haring would have to finance $980,000 or $79,000 a year for 20 years.

Voogt outlines several ways to bring in more money. It begins by enforcing the township's connection ordinance, which has allowed many properties to pass on water service.

“One way to pay for water is to sell more,” Voogt said. “There are properties that are not hooked up that are supposed to be.”

Next, increasing sales and correcting the availability charge for large meters.

Finally, the plan calls for adding more fire hydrants and collecting trunkage fees.

Funding

Voogt recommends the establishment of a general township millage increase of 1 mill to finance both wastewater and water systems. Township residents now pay two mills. Its charter allows for five mills.

Because the township wants to keep bills as low as possible - $25 a month for a residence or its equivalency for a business - it hopes to reduce its financing amount as much as possible.

Voogt points to negotiating with existing businesses for money up front to reduce the monthly payment.

The millage, Scarbrough said, would help protect the environment, public health and natural resources while allowing for growth in the township.

One mill a year is equivalent to about $1 a week for a $100,000 home.

“We want to protect the destiny, environment and the tax base of the township,” Scarbrough said. “If that is understood, people should invest one mill to protect the independence of the township.”

Ultimately, the decision on how to fund the program will fall to the township board. Voogt presented several options and recommendations on how to fund the project in addition to the ones mentioned.

whetstone@cadillacnews.com | 775-NEWS (6397)

Your Local Connection

Sewer system costs

New wastewater plant: $2.46 million

Connection of existing system: $366,000

Baker College/ISD expansion: $483,000

Bonding costs: $48,832

Total costs: $3.65 million

Water system cost

Phase I (Baker College, ISD, future YMCA): $1.26 million

Phase II (looping of system to close Wal-Mart, Tractor Supply loop): $254,000

Phase III (closing of west loop): $589,000