water, once more with feeling
Ok, where are we?
The Selectboard met last Tuesday night, mostly to discuss the allocation of costs for the upcoming bond vote on December 10th.
Quick refresher: we are having two votes that are related to water infrastructure:
In person vote on October 29th at 6pm to vote on the acquisition of the Woodstock Aqueduct Company, it’s property (excluding the Vondell), and it’s assets for $457k from the undesignated fund balance. The balance will be paid for by two grants.
An Australian ballot vote on December 10th (7am-7pm) to vote to bond the purchase of the Vondell and several capital projects.
Which projects are included?
The Selectboard agreed that the replacement of the water main from the tank at Cox District Road (also known as Option 1b), the purchase of the Vondell Reservoir property, the Elm Street Bridge pipe suspension, and the replacement for Well #005 should be prioritized. We left out the second storage tank (also known as Option 2) from this vote because Option 1b will (according to the engineering report) bring most of our hydrants into compliance and it requires procuring property for the site of the second tank.
Who is going to pay?
Last meeting the board tentatively agreed to the following split:
The bonds for the Vondell and Option 1b being paid by each property (~$6.6M).
The bonds for the Elm Street Bridge main suspension and Well #005 replacement being paid by rate-payers only (~$1.7M).
We also agreed to allocate the following on an annual basis:
$60,000 from our new Local Options Sales Tax revenue (this is estimated to be roughly ~30% of annual revenue, though we are not sure as we just completed our first quarter since it’s activation)
$75,000 from our Local Meals, Rooms, and Alcohol Tax revenue (roughly ~20% annual revenue). We initially discussed 30% of annual revenue being allocated but felt that the $40,000 delta would be more impactful elsewhere.
How did we get here?
If you recall from my last post, I made a case for everyone shouldering the costs of the bond, especially given that the hydrants are main driver of the cost and that if the Vondell is going to be a town asset, it should be shared equally.
My colleagues on the board who are on private wells shared the feedback they have been receiving from our community meetings: that non rate-payers do not feel it’s fair to shoulder the entire cost equally. So, after some philosophical back and forth, we hammered out the compromise above based on the fact that (unlike schools), not every property has the ability to connect to water but they do benefit (and currently pay for) the hydrants.
So, if you are a WAC customer, you will be paying for the $6.6M bond as well as $1.7M bond and an increase in usage fees.
What am I going to pay?
With the current fund allocation, all properties will be taxed based on assessed value around ~$40 per $100,000.00 per year. The amount will decrease by a handful of dollars each year as the interest decreases.
*This amount also assumes no additional grant funding will be available for bond projects
For WAC customers, the board is going to talk about the budget for the water company start talking about rates at our meeting on Wednesday 10/23 at 5pm.
Why are we using revenue from local options taxes to fund these projects?
Woodstock approved a Local Options Sales Tax at last Town Meeting Day specifically to defray the costs of upcoming infrastructure projects, because, boy, do we have them :)
Our other local options tax - on Meals, Rooms, and Alcohol - was approved on the ballot at Town Meeting in 2015, reading: “the revenue from which will be used for municipal economic development purposes, to invest in the future health and prosperity of the Town of Woodstock by promoting the town to potential visitors, residents and businesses, and by funding special projects that benefit the community.”
The Economic and Community Development Reserve Fund was established in late 2015 by a Special Meeting: Shall the voters of the Town of Woodstock vote, pursuant to Title 24 V.S.A. Section 2804 whose purpose is to fund economic and community development within the Town of Woodstock.
The Economic Development Commission was created in late 2009, with Charlie Kimbell serving as the first Chair. I have been told this body was created due a lack of bandwidth on the part of the Selectboard in sourcing ideas for economic development. The Commission serves as an advisory board to the Selectboard - they recommend to the board how the revenue from the Reserve Fund should be spent, and the board either approves or denies those requests. Commissioners are not elected, but appointed by the Selectboard.
As I have discussed (ad nauseam to most of you), I believe the acquisition of the water company is the single-most important thing Woodstock can do for economic development. As we experienced last summer, our businesses suffered greatly without access to clean and safe water. No water connections can be added to the system until the hydrant pressure is addressed. Expanding the size of the water main (from 8” to 12”) through Option 1B will increase the carrying capacity from the storage tank to the bridge by the Recreation Center, which will allow for increased pressure and also hopefully resolve some of the 30% water loss the system currently experiences.
The Vondell also has a strong case for economic development. Purchasing the Vondell is an investment in recreation for our residents and visitors (of increasing importance as winter sports continue to be limited by a warming climate). The Vondell is home to miles of both walking and biking trails, the latter which is currently maintained by WAMBA. Purchasing the land also allows Woodstock to diversify our assets, giving us leverage to raise capital in the future. Finally, it provides the ability to own an additional water source should we need to expand our system in the future (the Reservoir was used as a water source from the 70s until 1988).
Ok, so there you have it.
What else?
Have a plan to vote: the vote is in person on October 29th at 6pm at Town Hall. We have same day voter registration in Vermont - you can register in person at our Clerk’s office (hours here).
Reading
Only one reading recommendation this time - I have a long backlog to share once we get through the vote.
Conspiratorial Thinking, The Preamble
Let me know if you have questions or feedback. I apologize for the length of this.
