REALITY

[shinblind]

I was going to add this as a reply to X in the DEQ thread but it has gotten lengthy and somewhat off topic, so I put it here.

If my math is correct, the COL is borrowing $32 million for the water scheme. Now there are roughly 3,500 households in Ludington. 8,000 residents.

Divide the $32,000,000 by 3500 households = $9.142.00  debt per household.

Now the COL already announced raising your water bill $200 per year in 3 years. Divide the $9,142 in debt by $200 = 46 years to pay it off without including interest on the debt. Now I do not believe this bond is going to be for 46 years.

A more realistic time frame would be 15 years. That amounts to an annual increase of about $600.

I believe that to collect the $600 they will have to switch to monthly billing seeing as $50 a month will be needed to pay back the bond above whatever your current water bill is. Roughly speaking about $100 per month.

This should be a more realistic assessment of what your future water bills will be.

Also if the COL bill monthly it will be easier for the City to turn off your water and turn the bill over to a collections agency much like they now do in Detroit.

Oh and one other thing, the COLDS keeps reporting that the planned for water project is mandated by the State. No, it is not, this is a lie. It is but an option from the State. The minimum required by the State was a $4 million upgrade to the water intake plant. The additional $8 million is tacked on to supply water to Michigan Power.  And the $20 million cost for the Waste Water Treatment Plant was an option. The WWTP could have been upgraded and continue its current discharge operation. I haven't seen any discussion as to what the upgrades to the WWTP would cost.  Nor have I seen any cost estimate as to how much of the $20 million is related to Michigan Power.

[XLFD]

Shinblind,

Thanks for your math skills in your presentation, much of the water and sewer issue is pure mathematics which I haven't applied myself to with any rigor, and when I do, I get a headache because everything seems to point that our agreement with PM Twp. and Michigan Power was not made in our best interest.  The City of Ludington has not supplied the citizens with anything near what you have presented, but there are a couple things at least that you either overlooked or need to consider before making a solid analysis (there may be more).

First, the city does make water/sewer revenue from sales to Scottville and PM Township residents/businesses.  And whereas Scottville will see similar increases in their water rates to us, PM Twp. actually pays less than a dollar for each 100 cubic feet of water they purchase.  They even reduced fees this year, despite the fact that most of the water conduits being replaced are meant for them and their water-thirsty buddies at Michigan Power.

Second, Michigan Power has their own discharge permit, so they will only have to worry about paying the COL for water service only. 

Our city's appointed leaders and their 57 lawyers did all the rate consultant and bargaining with the other entities in secret and in clear violation of the Open Meetings Act and several other law and ethical lapses in between.  I hope our next city council seated will adequately investigate this travesty and take appropriate action.

[Willy]

32 million seems extremely excessive for a town the size of Ludington. Who's to know if any of the  money will see the inside of some politicians pocket. This is something that needs to be kept completely transparent with not only Council over-site but possibly a citizens board that can verify exactly where the money is going. Projects that require this amount of funding can lead to sticky fingered withdrawals by unscrupulous people who may have access to the funds involved.