District looking at its options

Worries about the life of the sewer system are prompting Jay County Regional Sewer District Board members to continue looking for better financial solutions.
The board approved for member Phil Ford to continue searching for refinancing for the district’s U.S. Department of Agriculture loan and heard an update from Faron Parr about discussions with local mayors to credit sewer rates.
The $610,000 loan is two years into its 40-year life, and with five pumps already being replaced in that time, Ford is worried that the sewer system will need to be replaced before the initial loan is repaid.
“I fear that we’ve got a system that at best is going to last 10 to 15 years before needing replaced,” said Ford. “I don’t know that the property owners were served well by us. … We need to find a way to fix this.”
An earlier negotiation process with USDA representatives in August showed that with such little equity, the chances of saving significantly was small, but Ford believes it’s the board’s responsibility to find a better solution.
He plans to find out the exact amount still due on the loan and check with the USDA in Indianapolis and other areas for a lower interest rate or a shorter lifespan.
Parr informed members that in talks with Portland Mayor Randy Geesaman, it seems a compromise was found for helping the district pay the increase in city sewer rates.
While an increase in each district residents’ sewer rates to coincide with increasing city sewer rates was turned down in October 2013, the district board has had to make up that difference out of other funding.
But the mayor is in the process of drawing up a contract to give the district a 10 percent credit on its rates, which will save $1,700 to $2,000 a year, said Parr. He noted that those funds could be used to purchase a replacement pump each year.
The credit would last for the life of the loan, after which the sewer district would come under ownership of the city.
Parr was appreciative that Portland leaders took the time to hear the board’s concerns.
“I’m very thankful and glad that they’re willing to work with us,” said Parr. “I’ve got to give the board of works credit, and appreciate them hearing our concerns. It’s very important.”
Parr now plans to approach Dunkirk Mayor Dan Watson in an effort to reach a similar agreement.
In other business, the board:
•Heard from Dunkirk sewer district resident Elizabeth Rouse, 3161 S. 1150 West, who requested assistance in paying the sewer rate for her father’s property, which also had a lien against it. He recently died, and Rouse told board members that she has since paid off the lien but it seems to keep getting larger. Rouse said her family has no means to continue paying it.
Board members said they would talk with Rose Morgan, the district’s accountant, to see what has been paid and if there’s any way they can help.
•Approved a loan payment of $13,603.75 to be made Jan. 1.
•Changed its meeting date from every quarter to every other month, with the next meeting set for 5:30 p.m. Feb. 9.
•Approved a recommendation to Jay County Commissioners to reappoint Ralph Frazee and Parr to the board for another three-year term.