While Wayland City Council members glimpsed a draft of the city’s capital improvements plan for the next five years, the interim manager said both local streets and water funds would have a negative unrestricted cash flow by the year 2020.
“Local streets can receive transfers from major streets but the water is a concern,” said Larry Nielsen. “With relatively low water rates you might have to take a look at that or at debt financing on other projects and a transfer from the general fund to the water fund.”
The council was presented a cost ranking comparison of water and sewer rates from 50 similarly-sized municipalities based on monthly usage of 6,000 gallons for a ¾-inch metered residential customer. With number one being the highest cost rank and 50 the lowest cost rank, Wayland ranked 42nd for water rates at $19.63, 40th for sewer rates at $33.84, and 48th for combined rates at $53.47.
By comparison, the highest rank for water was Mt. Morris at $83.15, highest sewer rate was Constantine at $100.15 and highest combined rate was Holly at $139.94. Greenville had the lowest water rate at $8.82, sewer rate at $20.70 and combined rate at $29.52.
In the county, Allegan ranked 15th for water rates at $37; 29th for sewer rates at $33.84 and 17th for a combined rate of $78.64.
Plainwell ranked 39th for a water rate of $21.62, 19th for a sewer rate of $47.22 and 33rd for a combined rate of $68.84.
Otsego ranked 49th for a water rate of $15.79, 21st for a sewer rate of $46.15 and 39th for a combined rate of $61.94.
Wayland’s city council took no action but will ultimately need to adopt a capital improvement plan, said Nielsen.
The draft plan for 2018-19 includes $452,500 in project costs to replace dialers at lift stations, a water system reliability study, Galaxy Estates street and water improvements, WiFi for City Park, design plans for Church Street improvements (from Elm to Dahlia) and design plans for lift station No. 1 replacement.
For the 2019-20 year, projects costs are proposed at $1,275,000, which includes the $470,000 lift station replacement project, a $390,000 10-inch forcemain replacement from the lift station to the wastewater treatment plant, and $235,000 in water and $125,000 in street improvements at Church Street.
Year 2020-21 proposes $1,485,000 in project costs to replace lift station No. 3, Park Street improvements from Elm to Dahlia, Marlo Lane/Geneva Court improvements and other projects.
Year 2021-22 proposes $1,885,000 in project costs for S. Main Street improvements from the south city limits to Superior, W. Elm Street improvements from the Interurban to Main Street, lagoon cleaning and other projects.
City engineer Mickey Bittner of Wightman and Associates said the annual amount available for projects actually remains static because when property values are up, so are expenses.
Equipment purchase
After comparing pricing of seven brands, the council approved purchasing a $167,209 CAT front end loader to replace the DPW’s current 22-year-old model.
With $225,000 in the equipment fund, council member Rick Mathis questioned financing the purchase so the fund is not depleted. Mayor pro-tem Jennifer Antel said if the money is there, it should be used for what it was meant for otherwise the money will go back to the general fund at the end of the year.
“I don’t think that’s standard,” said Nielsen. “The equipment fund should not revert to the general fund but should take into account depreciation and build up so money is already there.”
Antel said she has been frustrated for years over how the equipment fund is set up. The council voted unanimously to purchase the CAT without financing. It comes with an attachment that will reduce the manpower needed for leaf pickup.
Chicken update
Also during the meeting on Monday, Oct. 16, a third chicken ordinance draft was discussed and sent back to the interim manager to finalize a fourth draft after council member Rick Mathis pointed out several ambiguous rules.
“I don’t want poor planning to restrict policy or enforcement,” he said.
Virginia Ransbottom can be contacted at (269) 673-5534.
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