Lower bills could be in store for Oxford Township’s 3,413 sewer customers beginning this summer if Trustee Mike Spisz gets his way.
Last week, the township’s water and sewer committee voted 4-0 to recommend approval of a series of price-cutting proposals, crafted by Spisz, at the township board’s Wednesday, June 10 meeting.
Spisz would like to see the township’s non-metered sewer charge reduced from $63 to $33.50 per REU per quarter.
He also proposed lowering the metered sewer rate from $20 to $17.50 per 1,000 cubic feet.
‘Most of the businesses are on metered sewage,? Spisz said. ‘There are some businesses out there that are not metered and they pay by REU.?
The lower rates would only be for sewer customers in the unincorporated township. Village customers would not be affected.
Both measures, which are proposed to take effect with the next billing period beginning in August, would save township sewer customers approximately $1 million a year, according to the trustee’s calculations.
Spisz has also proposed that all sewer customers, both metered and non-metered, be charged nothing for the next three-month billing period beginning in August.
This would be a onetime only deal that would save residents and businesses approximately $400,000, according to his numbers.
How can the township afford to do all this? Three words ? excess fund balance.
The current sewer fund balance is approximately $7.5 million and it’s only getting larger.
Even by retaining a recommended fund balance of $4 million for future sewer-related infrastructure projects plus an additional $2 million for potential loans to help repay the water bond, the township still has excess sewer funds of approximately $1.5 million.
‘That’s what drove my proposal for these cuts,? Spisz said. ‘If we’ve got excess monies, we should always give it back to the taxpayers. We shouldn’t be keeping that.?
Spisz is ‘confident? his proposed cuts would leave the township enough money to make any major sewer repairs that might come up without having to raise rates.
‘We didn’t want to go in and cut too much because we don’t know what’s going to happen over the next fiscal year based on the economics,? he said.
Spisz noted if sewer rates are kept as is, the fund will grow by approximately $1 million per year.
The only increase the trustee proposed is to the quarterly charge township water customers currently pay to help retire the municipality’s $10.7 million bond debt, which is scheduled to be paid off in 2030.
This is the money the township borrowed to build two water treatment plants and construct the new 1-million gallon water tower across from Oxford High School.
There’s been considerable concern over the township’s ability to make its bond payments given the current economic downturn prevented the municipality from gaining the number of new water customers it expected and needed.
‘We’re falling short relative to our water bond right now,? Spisz said. ‘In 2008, we were $276,000 short for the water bond, so that comes out of the water fund. This year we’re projecting to be about $265,000 short.?
To counteract this problem, Spisz proposed raising the quarterly charge from the current $32 per REU to $40 from 2010 through 2015. It would then be lowered to $30 per REU per quarter for the period of 2016 through 2030.
‘If we raise it up to $40 as of 2010, we’ll still be $124,000 short for that year, but by 2012, we’ll be paying ourselves back,? he explained.
Even if the township board approves all of Spisz? proposals, these numbers won’t be carved in stone.
‘We’re going to review these numbers on a yearly basis for both the water bond and the sewer fund,? he said. ‘If everything goes well and nobody raises their prices, we may be able to put additional cuts out there.?
The chances of Spisz? proposals being approved appear pretty good at this point, considering three out of the four water/sewer committee members who voted for them also sit on the township board. They are Supervisor Bill Dunn, Trustee Joe Bunting and Spisz.
‘We need one more vote,? Spisz said.