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Will taxpayers pay for this system? No. The project will be funded by a grant / loan package from USDA Rural Development, a large grant from the U.S. EPA (commonly referred to as a State and Tribal Assistance Grant or STAG), and by connected user fees. At least one half of the initial project costs will be covered by grant funds. Due to the structure of our Rural Development funding source, the Town is expressly prohibited from levying taxes to support the project. The Town will be audited annually to ensure that no project costs are passed on to the grand list. The bond article simply represents an assurance that the Town is taking responsibility (a form of collateral) for covering project costs. Since the 1960's, Rural Development has made similar grant/loan packages available to communities for municipal infrastructure projects. None of these communities has ever defaulted. However, to the extent Town-owned facilities connect to the water system, the Town would pay its share as a connected user and the costs would be budgeted like other utility expenses, such as electricity and fuel. What are the tax implications of this project? If no Town facilities are connected to the water system, there would be no town-wide tax implications. All project costs will be covered through grant funds and connected user fees. However, if municipal facilities are connected to the system, annual costs would need to be budgeted, as is done with other utility expenses.
* The building the Town Office is in is managed by the Library and Town pays annual rent. It is not yet determined how the one-time and annual costs will be shared. What will it cost to be a connected user? Connected users will pay a one-time connection fee and an annual usage fee, and will need to cover the costs of installing the pipes from the town right-of-way to their existing water system. The standard connection fee will be $2,000, with a discounted $500 fee offered to users who sign up prior to December 31, 2009. This fee covers the curb stop to the right-of-way, and a meter on each customer's property. An annual fee, calculated to be approximately $700 with 280 connected customers, covers both annual water use and repayment of the project loan. The installation of pipes from the town right-of-way is a variable cost depending on distance and conditions. Connected customers will pay this to the contractor of their choice. Why is the Town pursuing municipal water? Waitsfield Village and Irasville were identified long ago as the appropriate locations for commercial development, services, mixed-uses, and higher-density housing. This is evident through the historic settlement pattern and mix of uses in the Village and, when the Village could no longer accommodate the demand, investments expanded to Irasville. This was reinforced and even guided through Waitsfield's Town Plan, zoning bylaws, subdivision regulations, and other policies, as well as public investments like the sidewalk that connects them and the Slow Road. A major constraint limiting the potential for new housing, the expansion of existing businesses, and the establishment of a more pedestrian-oriented development pattern in this area is the lack of adequate wastewater disposal and inadequate separation distances between existing and potential private on-site wastewater systems and wells. Many property owners in the Village and Irasville struggle with inadequate water supplies. Coincidentally, new State rules took effect in 2007 that expanded the State's jurisdiction over private water and wastewater systems. This means that people needing to replace their systems after July 1 will need to comply with stricter State rules and receive a state permit. For many properties, this may be a very expensive and challenging proposition. A municipal water system would provide a cost-effective alternative for property owners needing to replace or upgrade their water systems; provide reliable and high-quality drinking water; provide fire protection; and provide critical infrastructure to support the community's growth center, Is there a documented need for a water project? Yes. As part of the research and engineering done over the last 10 years, numerous well protection areas were found that overlap with private septic systems, creating both documented instances and real potential for contamination of drinking water. In addition, there are documented cases of wells drying up, leaving residences or businesses without a usable water source. Copies of these reports and maps are available for review at the Waitsfield Town Office. How long as the Town been working on this? The Town began its efforts to explore the feasibility of municipal water and/or wastewater more than 20 years ago. Phelps Engineering, Inc., out of Middlebury, was hired in 1998 to identify and begin testing various parcels of land for a potential water source and potential wastewater disposal. Go HERE for a detailed timeline of events. What areas of town will be served? The primary service area for the water is Irasville and Waitsfield Village. Water service will also be avaible to most of the properties along the water transmission route, including Old County Road, Tremblay Road, and parts of Route 100 and North Road. Will this lead to over-development in Waitsfield? No. The planning and zoning processes of the town will continue to manage what sort of development occurs and ensure that any development is in line with the Town Plan. The availability of a cost-effective, reliable source of potable water and fire protection may strengthen the viability of existing businesses and increase the variety of business opportunities and services available. Who will really benefit from all of this? We all will. Waitsfield Village and Irasville are the commercial district of our Valley, serving Waitsfield, Fayston, and Warren. We all benefit if this area has the municipal infrastructure that supports healthy businesses, thoughtful expansion, residential density in line with our publicly-vetted Town Plan, and services that enable us to do our shopping, business, and dining here. We also all benefit if we have helped our Village neighbors to have access to the water quantity and quality they need for daily use. In addition, our Town's public facilities (the School, Fire Station, and Wait House--which serves as our Visitor Center) will benefit from a safe and reliable water supply. Finally, the project provides fire hydrants and the potential for private sprinkler systems to help protect the real estate in the service area. Why can't we find a water source closer to the Village? The Town conducted an extensive search for existing wells and existing land suitable for a source supply, and even drilled two wells on a large parcel just across the Mad River close to Bridge Street, but could not find the capacity to meet the Town's needs. Locating a water source close to the service area can be extremely difficult because of the limitations regarding source control and the source protection areas required to minimize the potential for contamination. There are several public water systems in Vermont with source supplies at least as distant as the one proposed for Waitsfield. What is an ERU? An equivalent residential unit (ERU) is a standardized base design and billing unit established by Vermont state rules that represents an average daily water usage and wastewater flow for a typical three-bedroom residence. This method is used to provide a way of equalizing charges based on a property's potential share of water use and wastewater flow. The number determines the dollar amount of the connection fee and will be used to determine the base fee for annual charges. The minimum ERU for all properties is 1.0. These values have been used in the design of the facilities and are also the basis for calculating connection and user fees for both systems. When a connected user is referenced, we are referring to 1 ERU. Is there a limit to the number of water connections? The water supply does not have the same limitations as a wastewater system. Approximately 400 existing ERUs within the service area are able to connect to the water system, including properties along Old County Road, Tremblay Road, and portions of the North Road. For financial planning purposes, a target of 280 ERUs was determined. Prior to the March 4 bond vote, more than 75% of the 280 ERU target had either committed or expressed strong interest in connecting to the system, which is an excellent measure for this stage of the process. Based on water usage in similar communities, it is expected the system could support up to 750 typical households or equivalent residential units (ERUs), which is considerably higher than the 400 ERUs currently located within the service area. The Town has made a conscious decision to make connections voluntary. What types of chemicals will be added to the water? Chemical treatment with chlorine (for disinfection) and fluoride (to prevent tooth decay) is a local decision, and the Selectboard has indicated the Town will not add these chemicals on a regular basis. The State Water Supply Rules do require the Town to have a system in place for adding chlorine on a temporary basis if evidence of contamination is found during regular monitoring of the water system. What are the costs to owners installing piping from the right-of-way to their building? Costs will depend on the distance from the ROW to the building, whether there is ledge or other impediments to address, and who is hired to do the job. In general, however, the following can be used as a guide:
Depending on individual circumstances, an easement may be necessary over the fronting property to allow for the water line to be installed across their property. Is the Town of Waitsfield going to be able to manage a water project like this? The project costs include funds to hire a part-time facility operator on a contract basis. There are also companies in Vermont that provide this service to towns and other organizations. Existing staff and computer equipment at the Town Office will be able to carry out the billing and account management. The Town will set up an independent Water Fund to separate all revenues and expenses for the water system. A water commission or board of trustees will be formed to manage the fund, set water rates, hear appeals, and make policy recommendations. Over the next year, the Town will need to formally adopt a water use ordinance establishing the rules and regulations for the system. And during the project, the project engineer and the funding agencies will provide oversight and review of construction activities. Contacts
Updated October 8, 2009
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