The Northlands Sewer Project Revisited

I had hoped to move on to other subjects before I saw a rebuttal of my "Financial Future of Walsenburg" letter to the editor.  It was nice to see concern by a city official about these issues.

The idea that infrastructure replacement is to be done with regular water revenue is not correct. This money is in a capital improvement fund designated for these replacements. At the January 7, 2014, City Council Meeting, Dave Johnston stated that the money is still in the capital improvement account because no projects have been planned.  My understanding is that the funds are to be used for water and sewer line repair and replacement. Why are there no water and sewer line replacement projects? The use of these funds was approved two years ago.

One of the most persistent rumors about the Northlands Sewer Project is that it doesn't cost our city anything.  In other words, the total cost for this project will be the responsibility of the annexed property owners without any obligation to the citizens of Walsenburg.  Is it really possible for a mere 19 property owners to fully fund a $10,000,000 (the payback amount with interest) sewer line project?  Can anyone show that the Northlands property owners have paid any of this cost?

We must count the man hours spent on this sewer project, the security money for it,and the cost of valuable property and water rights being traded for land easements to complete it. The other part of the free equation that doesn't add up is for the city to guarantee the grants and loans because the Northlands property owners can't qualify for the loan or pay the $10,000 application fee.

If the Northlands property owners could do this project without the city, it would be different. The payments for the loan agreement can be made with sales tax from businesses in the Northlands. This is a refund of sales tax to make loan payments on the sewer project.  However, the sales tax in Walsenburg is not refunded to the merchants who collect it here. City officials have told of the benefits that are coming from taxes generated in the Northlands, but they are benefits for the property owners of the Northlands. Their sales tax pays for a new sewer line.  We would like a refund of sales taxes in Walsenburg to pay for some improvements here.

The cost of the sewer project is continuing to increase with time, according to Kent White from GMS Engineering.* This verifies my earlier statement that prices usually increase on goods and services over time. Rarely do contractors give refunds for money saved because a project is delayed.

Walsenburg is a partner in a project with Northlands property owners who need the credit of the city to guarantee the loan. It may be time to step back and reconsider the whole plan.  How long will it take and how much will it cost?  How many letters of intent do we have from businesses wanting to locate in the Northlands?  The citizens of Walsenburg need to have input in this project.  Perhaps a town hall meeting would bring these matters out in the open for discussion.

* from an interview with David Rinehart in the January 9, 2014, issue of The Signature.