Politics & Government
Sewer Service Extension Proposed for Mt. Horeb Neighborhoods
Sewer Authority eyes $7.8 million bond to finance projects.
The Warren Sewer Authority is considering $7.8 million in projects aimed at extending service and updating some aging infrastructure.
Chairman Doug Reeder explained the projects to the Township Committee at the July 18 meeting. Although the Sewer Authority is an independent agency, Reeder said its agreement with the township requires notification of projects to the township, "and make sure you agree," Reeder said.
He said the authority plans to seek the bonds before the end of the year for four purposes:
- $2.5 million to replace a pumping station;
- $2 million to refinance bonds issued in 2006 at 4.3 percent interest. The savings from refinancing the debt at a lower rate is expected to save the authority $100,000 to $175,000 annually, which will be used to partially pay for the new bonds;
- $1.8 million to extend service to Mt. Horeb Road neighborhoods, between Tall Oaks Drive and Geiger Lane;
- $1.5 million to replace an oxidation ditch (a first-stage treatment facility).
"We have a number of residents over there with failing septic systems," he said. "The reason it's so expensive is because Mt. Horeb Road is built on solid rock."
In addition to the savings on the refinancing project, Reeder said the bond will be repaid from revenue collect through sewer charges with no added fees or rate increases expected.
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