By JONATHAN SNYDER
Ryan Lefeld of ChoiceOne Engineering reported Monday that the Regional Sewer District will not be receiving principal forgiveness from the State Revolving Fund for the upcoming fiscal year.
SRF forgiveness has been the primary way the RSD has financed its previous projects in Kingsland, Craigville and Liberty Center. Without the funding, the rate paid by customers would skyrocket past what is reasonable. The Tocsin project alone will cost about $5 million.
Lefeld received an email from Baker Tilly addressing the reasons SRF gave that disqualified the project. According to the email, the Tocsin service area is not a disadvantaged area from a median housing income standpoint and the district has a balance on two other project loans due to those projects finishing under budget.
The RSD refuted both these claims, with Lefeld, RSD Attorney Mark Burry and board member Bruce Stinson stating that the Tocsin area has at minimum the same if not less median housing income than the previous project areas. Burry also said that those leftover funds from previous projects will be rolled into the Tocsin project.
Lefeld also stated that both the scoring system for SRF funding and the SRF’s numbers for median housing income have wildly changed over the past year. Previously, a major point of emphasis was having the project ready to start as soon as possible. In response to the initial regulations, the RSD engineered the project and are ready to start as little as two months from now, according to Lefeld.
Burry stated that a conference between him and Baker Tilly will attempt to dissect the new scoring criteria. The RSD could also perform an income survey of the Tocsin area to improve their chances for SRF funding next year. They also invited Commissioner Mike Vanover, who works with the Northeast Indiana Regional Development Authority, to discuss other potential funding avenues for the project.
In other updates, RSD Superintendent Lewis Brown stated that some of the floats controlling grinder pumps have been malfunctioning lately. The floats currently used are older, and Brown stated that a new supply with a new style could be obtained from Adams County. While these failures will not impact homeowners, Brown asked Lefeld to review the project specs for the Tocsin area so these failures are not as common.
Additionally, the RSD decided to authorize the purchase of a dropbox to be located outside the RSD’s office and approved Brown to search for quotes on new tires to upfit the RSD’s truck. The dropbox will cost the RSD approximately $2,600. The RSD also paid $24,798.42 in expenses, leaving them with a balance of $371,616.47.
Brown also reported that 11 homes need to connect in Kingsland, with four homes scheduled for contractors. Fifteen homes need to connect in Craigville. One is scheduled, but four vacant homes in the area have led to troubles reaching the homeowners for notices.
jonathan@news-banner.com
