LAKE HAVASU CITY
www.lhcaz.gov
Charlie
Cassens
Communications & Intergovernmental Affairs
Office
– (928) 854-4212 Cell – (928) 486-8879 Fax – (928) 680-4892
FOR IMMEDIATE RELEASE
July
11, 2007
City Officials Looking to
Ease Sewer Cost Burden
Lake Havasu City Council and staff are working together in an
all-out effort to keep the cost of the community’s new sewer system affordable
for its users. “We are confident that we
will be ultimately successful in bringing sewer rates down to a more affordable
level,” said city spokesman, Charlie Cassens.
“But it will take a sustained effort to acquire state and federal
financial support, and find new and creative methods to keep our bond repayment
obligations as low as they can be.” City
Manager Richard Kaffenberger echoed Cassens’ statement and cited a number of
actions the City has taken in the past in the effort to keep sewer rates down
for the consumer, including:
·
City contribution of $5 million to the
program annually since 2002 from its General Fund and Irrigation and Drainage
District Fund in order to help temper individual rates to the end users.
·
Council increased the annual contribution in
2007 and established a Rate Stabilization Fund to offset the additional
security required for debt service, thereby allowing rates to be set lower.
·
Council hired an independent engineering firm
which reports directly to the Council to oversee the project and ensure cost
containment.
·
ADEQ authorized the City to bypass homes that
would cost approximately $17,000 or more to connect due to hydraulic
challenges. Those homes will remain on
septic systems which lowers overall project costs.
·
Engineers reassessed treatment capacity based
on actual sewer flows which led to the City deferring phase 2 expansion of the
North Regional Wastewater Treatment Facility until future years beyond the
current program.
·
City initiated 30-year financing to realize
lower debt service payments as compared to the previous, 20-year plan. The City received 30-year financing for the
project from Greater Arizona Development Authority (GADA) last year and is
currently working with the Legislature and the state’s Water Infrastructure
Financing Authority (WIFA) to obtain 30-year financing retroactively and for
all future borrowings.
·
Staff monitors costs continuously and makes
rate adjustments as authorized by Council.
·
Staff and consultants continue to seek
federal funding to offset costs associated with the design and construction of
the sewer system.
In the
spring of 2007, Deputy Public Works Director and City Engineer, Bob Leuck said,
“We knew going into this 11-year program that adjustments to both the program
and its financial model would be necessary as it progressed. There have been cost increases, but there
were also savings that came from numerous design and engineering revisions and
higher efficiencies. What we have now is
a $452-million project, not the $463-million project we initiated five years
ago.”
Cassens
added, “The citizens of this community can be assured that their elected
officials and city staff are pursuing every opportunity to bring down sewer
rates. We are encouraged that the state
and federal governments seem to be recognizing their respective
responsibilities and financial obligations.
But it’s going to take more time and a concentrated, positive effort
before we will see the kind of government participation that will result in a
significantly lower sewer bill. The
bottom line is that there is no single solution out there. It will take a blend of many little things
and a few big ones to bring our sewer rates down to what we feel is an
acceptable level.”
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