The estimated price tag for overhauling the Sheridan water system is around $1.1 million, which Stan Wolfe of USDA Rural Development said was a "very rough estimate." He talked about the process that Sheridan is going through to obtain funds to overhaul their water system at the regular city council meeting Monday night. Snyder and Associates has turned in their Preliminary Engineering Report to the USDA and it noted that the old lines are in "poor condition." The city now has an emergency interconnection with the Hopkins rural water system; however, Mayor Leland Wake said that the city water system was never in danger from the flash drought that hit the area in August and September. Any funds that the city applies for to upgrade their plant or fix their water tower would be in addition to the price tag.
Census figures from 2010 show that Sheridan has an average median income of $36,750. This is sharply higher than the $20,357 that was reported in the 2000 census. However, Sheridan still qualifies for CDBG funds because 63% of the community is low to moderate income according to 2010 census figures. That means that the city can receive up to $5,000 per household on the system, or around $500,000 based on the city's figures of around 100 customers. The city still meets USDA's grant requirements as well.
Another hurdle that the city has to overcome is the 2% median income hurdle. In what amounts to a backdoor tax increase, the city is required to charge 2% median income for 5,000 gallons of usage. For projects obligated by September 30th, 2014, the city can charge based off the 2000 census figures plus $10, which would be $43.93 per month for 5,000 gallons. The city already charges $45.50. However, for projects obligated by September 30th, 2015, the city can charge 2% median income for the 2000 census plus $20, meaning that the city will either have to scramble to get their project obligated by September 30th of this year or raise their water rates again. For projects obligated after that, the city would have to go off 2010 census figures, meaning they would have to charge $61.25 for 5,000 gallons of usage. The average usage for customers in Sheridan is slightly over 3,000 gallons per customer.
The big challenge for the city is to get the environmental review for the project done, a process which could take months. Wolfe said that adding more 6" pipe to the south end of town in order to create more fire hydrants is considered an extra cost under USDA rules. He said he would go back and talk to Snyder about including 6" line on the south end of town. The current plan has no fire hydrants on the south end of Sheridan, meaning more difficulty for the fire department as well as possible higher insurance rates for customers. DNR rules require larger water lines for fire hydrants.
One question regarding the water system is the future of the water plant. Mayor Leland Wake said that there were drawbacks even if the city were to buy water from an outside source. For instance, the city would still have to do their own water testing and they would still be responsible for leaks within their jurisdiction. But on the other hand, if the city sticks with their water system, they would need to present a plan to stay in compliance with DNR's quality standards, which would add to the cost of the project. Wake said that it was important for the city to keep both options open.
Wolfe said that if the current Farm Bill passes the Senate and is signed by the President, there could be more funds for projects like Sheridan's. The council voted to file the application with USDA. That means that when the Farm Bill is signed into law, it would cover plans that are already on file with the USDA. He said that there were other communities that were worse off than Sheridan. For instance, Skidmore and Barnard ran out of water at one point before hooking up with the Rural Water District. Skidmore's water tower was shot, meaning that they had to build a new water tower as well as hook up to Rural Water.
New Water Superintendent Barry Lyle gave his first report to the city. He reported that the new aerator that the city installed to the plant was working and that he fixed two leaks at Rodney Martin's and Pete Belekonny's. He reported that two water meters froze during the extremely cold weather. There were two delinquent water bills reported. The city will look at delinquent taxes and compare them with the county's list.
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