Ortonville- Voters in the village will decide Tuesday the fate of a bond proposal for sewers.
Officials are urging residents to make their voices heard, regardless of which way they vote.
‘This is one instance in which your opinion matters,? said Trustee Dan Eschmann during the village council’s Oct. 26 meeting.
Council President Wayne Wills agreed.
‘I am proud of our community regardless of what happens,? he said. ‘Our community will continue to prosper in spite of economic restrictions.?
Wills has been a proponent of sewers in the village. Last December, the council unanimously approved a resolution requesting assistance from Oakland County to obtain sewers. The resolution noted the village was ‘in need of acquiring and constructing sewage disposal system improvements to serve the residents of the village,? and asked for help from the county in preparation of a contract to provide for that acquisition and construction, as well as financing.
The passage of the resolution followed several other steps the council had taken in an effort to finally pursue a wastewater treatment system in the village following years of debate over the issue as septic fields fail, e.coli levels rise in Kearsley Creek, and business growth is stagnant.
Within the last three years, the council has secured property on Narrin Street that can be used for a wastewater treatment plant, completed a required environmental study, and obtained the required DEQ permit.
However, residents began to voice dissent after a Feb. 18 study session in which Water Resources Commission Chief Deputy Phil Sanzica revealed the proposed sewer system could cost up to $20 million.
The proposed system requires individual grinder pumps and easements for each village property. The low pressure collection system is the only option available due to the high water table in the village. The wastewater treatment plant would treat approximately 320,000 gallons of sewage per day. Grinders would be located close to homes, in the approximate area of existing septic fields, and the pumps are described by Sanzica as ‘very quiet, subtle.?
Construction of the system is estimated to be $13,983,400, with engineering design and construction to cost $1,534,900, legal and financial costs estimated at $397,000, project management $1,166,660, right of way and land acquisition costs $516,660 and contingency of $2,446,340 for a total estimated cost of the system at $20,000,000.
The county would finance the project through a 40-year U.S. Department of Agriculture Rural Development Loan with an interest rate of approximately 3.75 percent. However, the interest rate passed on to residents will be about 1 percent higher to cover billing and other costs.
If the project is approved, all village residents would have a special assessment on their tax bill for 40 years. The construction cost per residency equivalent unit is $25,550 with the average tax bill over 40 years (including interest) $1,200 annually. A payment schedule provided by Bendzinski Financial Advisers to Oakland County shows principal payments consistently at $638.75 annually for the 40 years. However, the interest payments (at 4.5 percent on the schedule) would be sliding, with the first interest payment at $1,121.01, for a total special assessment in 2017 of $1,759.76 for each residence, and decreasing from there annually until the final payment in 2055 of $667.49 (interest and principal). In all, a village resident paying the special assessment for 40 years, including interest, would pay $47,970.13.
Sanzica stressed that the $20 million project cost is estimated high and could be ‘much lower? after construction bids are received and may also be reduced through a grant if the average median household income in the village is less than $56,000.
Residents would have the option of paying the $25,550 special assessment up front and avoiding any interest costs.
All costs, including the interest rate, are only estimates until bids for construction, which will not be pursued for this particular project unless voters answer yes Nov. 3 to the following ballot question:
‘The proposed Oakland County Ortonville Sewage Disposal System Contract between the County of Oakland and the Village of Ortonville dated as of Dec. 1, 2015 provides for the acquisition and construction of sewage disposal facilities comprising the Oakland County Ortonville Sewage Disposal System Project at an estimated cost of $20,000,000, for the issuance of bonds by the County of Oakland in one or more series to defray the costs of such facilities and for the pledge of the full faith and credit of the Village of Ortonville to the payment of amounts to the County of Oakland which are sufficient to pay the principal of and interest on such bonds. Pursuant to such pledge, the Village of Ortonville is obligated, subject to constitutional, statutory and charter tax limitations, to levy ad valorem taxes on all taxable property in the Village of Ortonville to enable it to make such payments to the County of Oakland to the extent that other funds, including special assessment and sewage disposal system revenues, are not available. Shall the contract be approved??
Voters can answer the question from 7 a.m.-8 p.m., Nov. 3 at the sole polling location, the Old Town Hall, 486 Mill St.
Brandon Township Elections Coordinator Karen McArthur said 104 absentee ballots had been sent out for this election and 91 had been returned as of Oct. 27. The village has 1,103 registered voters and she expects a high voter turnout’between 75 to 80 percent.
‘It’s a pretty hot topic,? she said. ‘There are a lot of people with a definite opinion. I think they will come out and vote. Bring your valid ID and your patience. It should be quick though? one question, yes or no and you’re done. Please come out and vote’whatever way you want, just vote, because I want the majority of the people to have their say. You have the right, so do it.?