Athol to float water bond to fund system upgrades

ATHOL — Athol voters will be asked on the Nov. 6 ballot whether they support the city issuing revenue bonds of up to $3.99 million to fund water system upgrades.

If approved with a simple majority vote, the water rate of $20 per month for up to 15,000 gallons of water could increase to as much as $55 per month.

"The city council made a commitment to the citizens that, if it is granted the authority (to issue bonds), it won't take out bonds that would exceed more than that $55 rate," said Lori Yarbrough, city clerk and treasurer.

She said the city anticipates receiving grant funding to help pay for the upgrades.

"The $55 rate is a worst-case scenario and the city expects that it will be less, but the reality is the maximum amount the bond is set at is $3.9 million," she said.

The public is invited to a meeting on the proposal on Tuesday at 7 p.m. at the Community Center, 30355 N. Third St., Athol. Representatives from multiple agencies will be available to answer questions.

Yarbrough said the city has applied for a USDA Rural Development grant and is in the process of applying for a Community Development Block Grant.

"If the bond passes, we'll see where the chips fall (with the other funding options)," she said.

Yarbrough said that, if the cost winds up topping the $55 rate, the council has vowed to go back to the drawing board on water upgrades.

There are 305 total water connections in Athol.

There's a myriad of water system issues that need to be addressed, Yarbrough said.

Two of the city's three water storage tanks are old, undersized and in poor condition, according to the city. Some water transmission lines are too small and can't supply enough water during peak flows and fire events, while others have bottlenecks that cause low pressure. Two well pumps have exceeded their useful life.

Yarbrough said the fire at the Vaagen Brothers Lumber mill nearly drained the system. Further, residents on the south side of the city have had water pressure issues.

The low pressure issue has also resulted in potential drinking water contamination concerns, Yarbrough said.

"We don't want to be the next Airway Heights or Flint, Mich.," she said, referring to cities that have had serious water issues.

Yarbrough said it makes better financial sense to tackle the issues as a whole rather than bit by bit.

"It's much more responsible to look at the longer-term approach," she said.

Athol hasn't had any major water upgrades in about 20 years, Yarbrough said.

Yarbrough said residents have been getting a great deal for water for $20 per month and the city estimates the bill should be $28 to break even, but the city has been applying lease funds from cell towers into the water account to keep rates low.

The anticipated interest rate on the proposed bond issue based on current market rates is 3.13 percent. The total amount to be repaid over the 40-year life of the bonds, based on the anticipated interest, is $7 million.

Yarbrough said the bond will be a part of the regular city budget for the life of the bond.

Athol's residential and commercial water rates are proposed to be the same so they both become based on usage. The current commercial rate starts at $52 per month for up to 45,000 gallons. The move is intended to be fair for all water users, Yarbrough said.

For more information on the bond proposal, call 208-683-2101 or email questions to cityclerk@cityofathol.us.