With the Township’s confirmed receipt of funds, the bond review, D&W’s opinion, and the related bond financing closing documents being released, the issue is closed. We have closed with Rural Development.
The township has successfully closed on the grant and loan for the USDA Sewer Force main. Project to transport the wastewater from the Whites Beach Community to the City of Pinconning.
Construction is currently underway and will continue to move forward with the estimated completion date of September 2025.
There are a couple of outstanding issues, we have not come to an agreement with Pinconning Township regarding their residents hooking up to the sewer and approval to occupy the Pinconning Township Road Right of Ways along the construction route.
We still have one Grant Request that has not been answered. It is a 1 million dollar grant we applied for through Jack Bergman’s office. We have not been told if it will be awarded to us or not.
The planning season has drawn to a close for 2024. Next year's schedule is to be determined. It is worth noting that all of current planning members have resigned.
The Board of Review members have turned in their resignations.
The Zoning Board of Appeals members have turned in their resignations.
The Standish Township Assessor has turned in her resignation. Ronda's last day will be Nov.20,2024
Susan Kohn has made the decision not to take the oath of office and pursue another term as Treasurer. Her last day will be November 20,2024
To the Citizens of the Whites Beach Water and Sewer District (the “District”):
We would like to give you some background information on the District water and sewer improvements required by the Michigan Department of Health and the Michigan Department of Environment, Great Lakes and Energy (“EGLE”).
RECAP - Phase 1 Water Distribution/Sanitary Sewer Systems including Piping, Meters and Grinder Pits.
Phase 1 was funded by the United States Department of Agriculture (“USDA”) with 40-year, low interest loans totaling $2,468,000 and grants totaling $7,403,000. Net of the grants, the cost per household was $6,461.49 for sewer and $4,197.02 for water, totaling $10,658.51. The cost per household is being financed through 40-year special assessments that appear on your winter tax bill. The annual special assessments per household are $157.86 for water and $243.04 for sewer. The annual special assessments began in 2021. Property owners have the opportunity to pay off the outstanding balance of the special assessments in full every August. Partial payments cannot be accepted.
Phase 2 Water/Sewer connection to the City of Pinconning.
Phase 2 is being funded with low-interest loans and grants from the State of Michigan (the “State”) and the USDA. The low interest loans totaled $3,435,500 and the grants totaled $5,641,500. Funding from the State included a $2,332,500 low interest loan and a $2,332,500 grant. Funding from the USDA included a $1,103,000 low interest loan and $3,309,000 grant.
The low interest loans will be paid from net revenues of the water and sewer systems. Net revenues are revenues after the payment of the administration, operation and maintenance of the water and sewer systems. Revenues will consist of monthly ready to serve/debt service charges (“RTSC”) and monthly commodity charges based on usage.
The combined water and sewer RTSC for the average homeowner will be $161.06 per month. This includes a monthly water RTSC of $67.25 and a monthly sewer RTSC of $93.81. The monthly RTSC were calculated based on the minimum amount of revenue necessary to pay the fixed costs of the administration, operation, maintenance and debt service requirements of the water and sewer systems. The RTSC were calculated by the Township’s municipal financial advisor, using information about the water and sewer system projects provided by the Township and the Township’s engineer.
In addition to the monthly water and sewer RTSC, there will be monthly water and sewer commodity charges based on metered water usage. The water commodity charge will be $11.84 per 1,000 gallons of usage or any fraction thereof. The sewer commodity charge will be $10.89 per 1,000 gallons of usage or any fraction thereof. The monthly RTSC were calculated based on the minimum amount of revenue necessary to pay the variable costs for treated water and sewage disposal. Again, the commodity charges were calculated by the Township’s municipal financial advisor, using information about the water and sewer system projects provided by the Township and the Township’s engineer.
Homeowners will begin paying the monthly water and sewer RTSC after the water and sewer connections with the City of Pinconning are completed. For example, if the water and sewer connections with the City of Pinconning are completed in August of 2025, monthly water and sewer RTSC will be due and payable in September of 2025.
After the water and sewer connections with the City of Pinconning are completed, homeowners in the District have up to 6 months to connect to the systems. Once service is established, the homeowner will begin paying the water and sewer commodity charges based on usage.
Water and sewer rates and charges will be reviewed and adjusted annually based on the cost of treated water and sewage disposal with the City of Pinconning and the cost of the administration, operation, maintenance and debt service requirements of the water and sewer systems.
Can the Amending Water and Sewer Rate Ordinance establishing the necessary rates and charges to operate the water and sewer systems be rescinded?
Yes. However, if rescinded, Phase 2 cannot be completed. Homeowners in the District will not have access to treated water or sewage disposal services, as all other options were turned down by EGLE. State and USDA grants totaling $5,641,500 will be forfeited and any amounts drawn to date will have to be repaid in full.
If Phase 2 is completed homeowners in the District will have access to treated water and sewage disposal services. Completion of Phase 2 will preserve the possibility of adding additional sewer customers in the future if approved by the City of Pinconning and Standish Township. Such additions will mitigate costs borne by the District.
We would like to bring on sewer customers from Pinconning Township. This is in the beginning stage of talks with their team.