Water district proposes funding measure

By BRIAN WALKER

Staff Writer

Nearly 400 homeowners south of Post Falls on the Spokane River are being asked on the May 15 ballot whether their water and sewer district should issue and sell its water revenue bonds of up to $1.8 million to replace undersized and aging waterlines, improve fire protection and allow additional hookups.

The cost per household in the Greenferry Water and Sewer District, east of Spokane Street along Riverview, is $15 per month, which has already been assessed on each household since 2016 for capital repairs and replacement.

"So, in essence, there will be no increase in current rates, but simply allow the district to make these major improvements all at once, rather than piecemeal," said John Austin, the district's accountant and manager.

The ballot measure requires a simple majority vote (50 percent, plus one). If approved, the bids will go out immediately and construction would occur this summer, Austin said.

"It's important to note that the district has new wells that produce sufficient water for the district, as well as sufficient reservoirs," he said. "The problems have been the undersized lines going from the wells to the reservoirs. This project will remedy that."

Austin said the district's plan to upgrade the 40-year-old water system would allow water from the wells to better reach the reservoirs, thereby reducing pressure problems and allow the district to add hookups.

Austin said the $15-a-month rate was implemented in 2016, so the district built up some reserves after nearly depleting all of them on just one project in which electrical conduit had been installed a few inches below the street by a developer years ago to convey water to a few homes.

"We had to drill through granite to fix the line correctly," Austin said. "That's when the board knew we had to do something."

The Idaho Department of Environmental Quality helped to fund an engineering study on how to fix the problems. The study's recommendations will be implemented if the measure is approved.

"The revenue bonds we would issue would allow us to borrow up to $1.8 million now from the $15 per month currently being set aside for capital improvements rather than one small project at a time as we accrue the dollars monthly," Austin said. "It just makes sense to the board to see the district upgraded now when the lines are leaking from substandard construction and old age rather than over the next 20 years."

USDA would cover the revenue bonds, so the district can maximize its debt service over 40 years. The interest rate anticipated on the proposed water revenue bonds, based upon current market rates is 3.25 percent. The total amount to be repaid over the life of the proposed water revenue bonds, including interest is estimated to be $3.2 million.

"We would likely repay them faster than that, but it allows us to borrow up to $1.8 million now," Austin said.

Austin said the only concern among some residents is that a few of the original water lines were placed in alley ways behind houses, which have since been covered up by fences and other structures.

"We have proposed moving those lines to the streets in front of the house, where they should have been in the first place," he said. "That can create an issue for homeowners because the water lines would then run to their houses from the street and that means possibly affecting landscaping.

"We are assuring residents that we'll restore the landscaping and that moving the lines will also allow the district to install fire hydrants in the street. This will help with fire protection that is currently not in place everywhere in the district, which could reduce house insurance premiums."

For more information about the ballot proposal, contact the district at greenferrywater@greenferrywater.com or 208-773-5510.