Milton feeling the pressure of needed utility repairs

The city of Milton is in hot water with the state Department of Health (DOH), regarding required improvements to the city’s water system.  

The city’s Public Works Department identified more than 30 water utility upgrades or repairs on the Water System Plan’s Six-Year Capital Improvement List. Due to lack of city funds, the department narrowed down a list of six crucial projects – the top two being repairs to the city’s reservoir booster station and an iron and manganese treatment project for the Corridor Well Facility.

The city’s water utility has been under pressure from the DOH to make these necessary improvements for several years, Public Works Director Letticia Neal told council.

“The Department of Health expected planning work on these upgrades to begin this summer,” Neal said. “They are holding a hammer over the city. They want to know what’s taking so long and they are watching.”

The city has developed a plan to fund all six crucial projects on the improvement list. First, the city will implement an interfund loan of $150,000 from the Electric Utility Fund to the Water Utility Fund to begin design work associated with the improvement projects. This loan would be re-paid within three years.

Next, city staff has suggested that council use a $2.3 million bond to finance all six projects within six years. If council approves bonding, the city would be required to pay back roughly $192,000 for the next 20 years. Water utility rates would not need an increase until at least 2014, Neal added.

She told council that paying the projects back through a 20-year bond would be the most reasonable for the city, residents and customers.

“Residents come and go. It makes sense to spread the cost out over time, so people moving into the city 10 or 15 years from now will share in the cost of these projects, not just benefit from them,” Neal said. “They can have a water system they truly appreciate.”

Several council members were concerned with future costs of the project.

Councilmember Bob Whalen expressed concerns regarding future funding of the project and its potential impact on customers.

Councilmember Leonard Sanderson suggested re-investigating the cost difference in buying water versus spending dwindling city funds on the costly repairs.

“We can buy water, but having our own source means we can have a say in the prices for our customers,” Councilmember Bryan Ott said. “If we don’t invest in the repairs and just buy water from someplace else, we won’t have a say in the cost of our water.”

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