It looks as if any water rate increases or proposals to raise the sales tax are off the budget table for now as the Cedaredge trustees get down to specifics for 2014 spending plans.
But the town board is zeroing in on the idea of a $6.50 per month charge tacked on to sewer bills.
The extra charge comes on top of a $6 charge that was added last year. It is intended to build a cash reserve of $500,000 in two and a half years that will help pay for the town's new sewer treatment plant.
The funding scenario looking two and a half years down the road assumes that the $500,000 cash will be needed as matching money to get grants and low-interest loans for the sewer plant.
The additional $6.50 has not been officially recommended to the board, but following discussion at a trustee work session on Sept. 12 it appeared likely that it will be.
The town board can add the fee at any time by adoption of a resolution.
Trustees have abandoned the idea of another water rate increase. "I'm done with it," said Trustee Gene Welch of raising water rates again. "There have been too many increases. I'm not touching it."
Other trustees agreed.
Shortfalls in the water operations fund projected by the 2014 budget will be backfilled by a money transfer between two different accounts in the water utility fund.
In another budget move, the town board is expected to approve sale of water shares to raise money in the sewer fund. The town water fund will buy the water shares from the sewer fund.
The deal works as follows:
• In 2008, the golf course transferred $581,600 worth of water shares to the town sewer fund. Some shares were also transferred to the general fund. The shares were transferred as repayment for loans to the golf course;
• An amount of $51,600 worth of those shares will be bought by the water fund from the sewer fund in order to provide money to the sewer fund;
• The transaction values 13 shares of Park Reservoir company at $41,600, and one-quarter share of Alfalfa Ditch at $10,000.blog comments powered by Disqus