Jay County Commissioners agreed Monday to tap infrastructure funds generated by host fees at Jay County Landfill to take over repayment of a regional sewer district bond.
But it’s not yet clear when the county will take over the bond payments of more than $28,000 a year.
And the decision to take on that responsibility came on a 2-1 vote.
“I’ve got to say, ‘No,’” said commissioner Mike Leonhard, “even if you use infrastructure money.”
Jay County Regional Sewer District, which serves a rural area west of Portland and areas both north and south of Dunkirk, has been plagued with financial difficulties since its inception.
A U.S. Department of Agriculture grant of $498,000 and a USDA 30-year Rural Development Bond issue of $604,000 initially funded most of the cost of running sewer lines from Portland and Dunkirk’s wastewater treatment plants to nearby rural homes and businesses.
But the current amount that customers of the district pay for debt service isn’t enough to cover the semi-annual bond payments.
“To be honest, I kind of think this has been a mess from the beginning,” county council president Jeanne Houchins told commissioners Monday.
Dunkirk area customers have been paying $87.50 per month, and Portland area customers have been paying $80 per month.
With $27.21 per customer per month dedicated for debt service, only $23,835.96 is generated per year. Meanwhile, the 2018 bond payments totaled $28,443.75.
Because of municipal sewer rate increases by the two cities, monthly charges for Dunkirk area residents had been expected to jump to $101.85 on Jan. 1. Portland area residents’ charges had been expected to jump to $92.80 by 2021.
But it’s not clear now what the rates will be in the immediate future.
“This will take months,” said commissioner Barry Hudson, who also serves as president of the sewer district board.
New rates will have to be established by ordinance after the county takes on the debt service responsibility, and questions have been raised about the municipal rates themselves. For instance, the City of Portland’s agreement with the district calls for rural residents to pay 36.5 percent more than city residents, a fact Hudson finds baffling.
Ideally, commissioners said, they would like the municipalities to take over maintenance of the infrastructure of the district. That, however, has not been negotiated.
Leonhard’s opposition centers on the fact that the county does not assist other rural residents when they have problems with their septic systems or leach beds.
Hudson had originally proposed to the county council that the sewer district customers receive a subsidy that would reduce their monthly bills or soften the blow of the Jan. 1 expected increase.
But that idea drew little response.
“They really were not in favor of subsidies,” said Houchins.
Instead, county council offered two different recommendations on how the county could pay off the district’s bond issue.
One, which was rejected by commissioners Monday, was to set aside $111,000 a year for four years from county economic development income tax revenues and pay off the bonds in about five years.
The second approach, which the commissioners adopted, calls for yearly payments for 19 and a half years with infrastructure funds to pay off the bonds.
“We’re either going to take it from a fee-driven fund (infrastructure) or a tax-driven fund (EDIT),” county auditor Anna Culy explained.
Richland Township resident Derek Rodgers, who has been one of the spokesmen for rural Dunkirk residents, urged the infrastructure approach, noting that the interest rate on the bonds is low, so there is no need to pay off the bonds early.
“Jeanne and Barry have invested an enormous amount of time on this,” said commissioner Chuck Huffman.
Houchins gave credit to Hudson.
“Barry has really done his due diligence on this,” she said.
In other business, commissioners:
•Agreed to purchase a new Kobelco excavator for the county’s ditch crew from Southeastern Equipment at a total cost of $168,080. Part of that cost will be covered by a $76,000 insurance settlement related to the loss of an excavator this summer to fire. The balance will be covered in part by a short-term loan from First Merchants Bank. County surveyor Brad Daniels secured several different bank quotes on loan rates, and First Merchants was lowest at 3.65 percent. Huffman, who is employed by First Merchants, abstained from voting on the financing.
•Approved a $50,000 pledge of economic development funds from NextEra’s Bluff Point Wind Energy Center for the capital campaign at Arts Place.
Arts Place is currently engaged in a $2.4 million fund-raising effort and has raised $1.5 million so far.
“I know we’ll get there, but it would be important to our project to get a boost,” said campaign chair Mindy Weaver. “Rob and I as business owners realize the importance of keeping our community a thriving place. … You need to have many things to entice people here.”
Hudson noted the county still has about $176,000 that has not yet been earmarked.
“I’m kind of surprised that more people haven’t come forth to ask us for funds,” he said. “I think the money’s there to be used.”
•Opened three proposals from health insurance consulting firms — Platinum, Ertel and Co., and USI — which will be reviewed then discussed at a future meeting.
•Set Oct. 8 as the final date to receive proposals on leasing pasture land and the barn at Jay County Retirement Center, noting that there will also be a date set to receive quotes from farmers interested in a cash rent agreement involving the center’s tillable ground.
•Decided that a meeting of the county personnel committee was necessary after Culy informed them that Jay County Sheriff’s Office is not abiding by the county’s standard operating procedures when it comes to compensatory time.
•Approved paying $6,800 for roof repairs at the Jay Emergency Medical Service building. Leonhard abstained from the vote because his firm did the work.
