What about burden on, or capacity of, utility systems?
  • No risk to Wastewater Treatment Plant (WWTP)
    • The City is building a new Wastewater Treatment Plant (WWTP).  That plant is designed to accommodate 0.7 MGD (700,000 gallons of wastewater per day).  Using a population equivalency of 100 gallons per capita (person), per day, that would accommodate a population of 7,000 at maximum capacity.
  • No risk to the wastewater collection, water or natural gas systems
    • The burden on the wastewater collection system, the water system, and the natural gas system is not significant with the addition of residential properties.  For all these utilities a greater number of monthly rate payers will help spread the cost of the system across more people and could drive down the overall cost for each household.  For the new WWTP, the more customers paying into the system – without exceeding the current capacity – the faster the City receives funding to pay off the debt of the WWTP.  A quicker payoff of the debt could potentially decrease the rates for that utility.  In recent years, City officials have discussed the need to possibly see an increase in water rates.  Having more rate payers without a significant increase to operation costs should postpone the need for a water rate increase.  The natural gas system has not had any recent rate increases and none are expected if the new homes are built.
  • New houses pay fair share for system impact and depreciation
    • Each housing unit will pay a water/sewer/natural gas connection fee of approximately $5,700.  Natural gas is not required, and there are various sewer connection fees.  With the first two development districts, at full buildout, the City will receive approximately $969,550 for new utility service connection fees (excluding optional natural gas).

Show All Answers

1. What are Rural Housing Incentive Districts?
2. Why are RHIDs being considered?
3. What does this proposed incentive cost current taxpayers?
4. Are there other potential costs that will increase my property taxes?
5. What about burden on, or capacity of, utility systems?
6. The City will lose out on a lot of taxes over 15 years.
7. Why is the City considering this incentive now?
8. How will the City benefit from growth?