Water Capital Charge: In 2001, the City’s voters approved a debt millage of 1.046 for the reverse osmosis water plant, which has the added benefit of softening the water. At that time, the millage covered the bond payments for the water plant. In 2008, when the taxable values started to take a dip, the millage was no longer covering the bond payments. The Water Fund was able to handle this for several years until 6/1/2012. At that time, City Council determined a capital charge was needed to make the bond payments. Currently, the bond payments in the Water Fund for Fiscal Year 2019 (begins 6/1/2018) are $300,375. The debt millage collection is forecast to be $222,000. The additional capital charge collection forecast is $75,000. Even with the additional capital charge, the Water Fund is still absorbing some of the bond cost, but not the full difference of $78,000. The final year for the water plant bond payments is Fiscal Year 2023 which ends 5/31/2023.
Sewer Capital Charge: The City had several key areas in the City that had infiltration of storm water into the sanitary sewer system. In the mid-2000s, Genesee County and the State of Michigan began an extensive program of monitoring sanitary systems and developing intricate and large fine systems. The City had key areas that it needed to fix the infiltration rate of storm water into the sanitary system or be fined double what it would cost to fix the system. The City bonded to fix these issues. The bond payments for Fiscal Year 2019 are $46,500. The additional capital charge collection forecast is $75,000. The difference pays for the capital items in the sewer fund including sewer vactor jets, repairs to sewer lines and any emergency item that may need to be replaced in the fiscal year. The final year for the sewer bonds is Fiscal Year 2030 which ends 5/31/2030