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HI-DESERT WATER DISTRICT GETS PRELIMINARY PROPERTY OWNER COSTS FOR SEWER SYSTEM

At its meeting last night, the Hi-Desert Water District Board of Directors received a preliminary estimate for four options for property tax assessments facing property owners in the three phases of the proposed sewer project. The board will also be faced with the decision of using a contractor who can build the sewer system in two years, or taking on the project itself for less money over five years. Managing editor Tami Roleff was at the meeting and files this reportā€¦

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Scenarios 1 and 3 are outsourcing the construction to a contractor who can build the project in two years, with grants totaling 10 percent of the cost (Scenario 1), and 5 percent of the cost (Scenario 3). Scenarios 2 and 4 are if Hi-Desert Water District builds the project in five years, with 10 percent and five percent grants, respectively. The interest rate for a state loan for all scenarios is 1.5 percent. The assessments would be lower if the water district qualifies for a .5 percent interest rate.

Depending on several factors, such as whether the Phase 1 property owner has developed or undeveloped land, how much grant money the district receives, and whether the water district hires a contractor to build the sewer in two years or does it itself in five years, the one-time Phase 1 assessment for a single family home could range from about $13,700 to $17,400, with multiple family residences and mobile homes paying less (Multi-family homes would pay .72 of the amount; mobile homes, .60. Commercial properties would be assessed based on the water usage over a year). The cost could be even lower if the water district decides to build the sewer project itself. Director Dan Munsey wasnā€™t sure the lower cost, and longer construction timetable, would be worth it. ā€œThe time and liability of doing the work in house has got to prove to be a greater benefit than the cost savingsā€¦. Iā€™d almost be willing to pay a couple more dollars to get it done and move onto the next stage.ā€ Property owners in Phases 2 and 3 would be assessed between $3,800 and $4,600 (with calculations for multi-family homes, mobile homes, and commercial properties), with a second assessment coming when the sewer project begins in their phase, set for 2019 for Phase 2, and 2022 for Phase 3. The assessments could go lower, as the estimates were calculated using an interest rate of 1 Ā½ percent, while the board is still hopeful it can get a Ā½ percent interest rate. These numbers do not include the property ownerā€™s estimated cost of $2000 to connect their residence to the sewer in the street. But first residents must approve a ballot measure, set for late this summer, to establish the assessment districts and tax themselves for the sewer project.

 

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