By Georgia Thelen
Staff Writer
The Village of Lake Orion will be moving forward with a change of water rates and will be holding a public hearing to discuss the Village’s option on Dec. 12 at 7:30 p.m.
“We are hoping to get opinions from the public if they want a one large financial burden or a phased multi-step approach,” said Ken Van Portfliet, Village Council President.
On Sept. 12, the Village was presented with a plan for water main replacement throughout the Village from their engineers Hubbell, Roth and Clark (HRC). HRC found during a routine Water Reliability Study that the infrastructure of the Village’s water mains and pipes were severely deteriorated due to age.
The total replacement, which equals about 7.4 miles of water mains and pipes, is suggested to cost $7.8 million. To cover the cost, the Village has decided to take out bonds in the amount of $8 million, which also leaves Village residents with the chore of paying higher water rates.
There are currently two proposed rate options for residents. Both options will be starting in Jan. 2017 with water rates at $2.74/unit and sewer rates at $3.87/unit with rates changing every July through 2020.
Option one is $8 million single bond debt at 2.5 percent with completion of the work done at one time. Choosing option one would increase water rates to $5.63/unit and sewer rates to $4.03/unit in July 2017. July 2018 rates would be $5.72/unit and $4.19/unit for water and sewer, respectively. July 2019 rates would be $5.81/unit and $4.36/unit for water and sewer, respectively. In July 2020, water rates would be $5.90/unit and sewer rates would be $4.53/unit.
Option two is $8 million phased bond debt at 2.5% with completion of work phased over four years. Choosing option two would increase water rates to $3.65/unit and sewer rates to $4.03/unit in July 2017. Rates in 2018 would increase to $4.53/unit and $4.19/unit for water and sewer, respectively. July 2019 rates would be $5.26/unit for water and $4.36/unit for sewer. In July 2020, rates would be $5.90/unit and $4.53/unit for water and sewer, respectively.
The Village council would like to hear the public’s opinion regarding the two options before they make a final decision before Dec. 31.
Interested parties may attend the public hearing at 21 E. Church Street or submit written comments to the Village Clerk prior to the hearing. Written comments may be sent to galeczkas@lakeorion.org.
The Village Council will also be appointing a new council member at the Dec. 12 meeting.
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