The contingent liabilities for infrastructure failure in our city have been estimated as high as thirty million dollars by a city official. They include items such as natural gas transmission line repair, major water storage problems, and costly leak repairs on our water supply lines from LaVeta. All of these items directly effect our tax and utility rates. It is difficult to get overly excited about costly projects that can drain our municipal funds for engineering fees and clean up expenses for sewer ponds that are privately owned in the Northlands. Even if property owners are willing and able to pay some of the expenses, it still leaves Walsenburg water customers guaranteeing the debt.
When the Northlands sewer project is studied for its benefits to the city, it doesn't add up. The population served by this project is small. However, the financial backers for it are the city water customers. The last thing I want in my future is continual water and tax rate increases to promote land speculation.
Engineering Map of Northlands Sewer Project |
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I am curious. The Huerfano World Journal states that all the money is assigned and ready to go into contract. They stated that all that is necessary to be done is get the City Council to sign the contract to start the development. Is this not true? And I would just like to also know who was the city official that stated that the liabilities in failure are 30 million? Just some questions.
ReplyDeleteThe project involves a USDA Loan and a Grant. Part of the process involves securing easements for the line to cross private property. These easements have not been secured.
ReplyDeleteThe $30 million in contingent liabilities refers to a number of infrastructure problems which could happen any time. The transmission line for natural gas from Trinidad is in very bad condition. This one project count cost about $9 million. The water tank in Walsenburg is very old and could fail (leak) at any time. The water lines and sewer lines in Walsenburg are in very bad condition. There are some dams which need attention and the water line from La Veta needs replacement.
There is repeated denial that any of this project will cost Walsenburg. Consider the fact that the property owners in the Northlands could not get the USDA loan.
I hope this answers you questions. I am happy to make an effort to answer them.
Thanks for your comment. Al Murphy
Ah thank you! This all makes sense. How much was the loan and grant for each?
ReplyDeleteWhat is the probability that the easement will be secured? What about the fact that this change has been mandated to the Walsenburg City Council?
Since Northlands did not receive the USDA loan, how will that hinder the project? Did Walsenburg also recieve a loan?
Thank you for the answers.
Joseph Maroney
The USDA loan was said to be $3.2 million. There are origination fees involved with this. At present about $500,000 in invoices have been received from the engineering firm. The CDBG grant associated with Huajatolla Hills is for $700,000 but it requires $301,028 in matching funds.
ReplyDeleteDo you have the name of the state official quoting the potential liabilities?
ReplyDeleteThis was a city official. Since I was in a private meeting, I would rather not divulge the name.
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