Wayne Township to extend water line, become fire districtPublished 10:05pm Monday, October 14, 2013
A fire district can now be formed in Wayne Township following an agreement between the township and the City of Dowagiac.
At a regular meeting Monday, the Dowagiac city council approved a resolution allowing an expansion of water service through Wayne Township.
The township will extend a water line on Nubour Road, past the city’s former landfill, to connect to the city’s water system so that the township will have water to tap into in case of a fire.
“The City will contract a special assessment of 15 percent of the water service expansion project,” said City Manager Kevin Anderson. The agreement states that the city will pay the 15 percent to a maximum total project cost of $1,050,000.
At maximum project cost, the city will pay $157,500, which could be paid over the course of up to 40 years with a 2.75 percent interest rate, according to Anderson.
Anderson said the only caveat to extending the payment for such a long period of time is that if a cash flow problem arises and the township is unable to make their payment due to timing, the city will prepay a portion of the city’s special assessment agreement to make sure there is enough money to fund the interest cost.
The first interest payment is projected at $37,000. If the city prepays, the remaining balance to be paid over 40 years is $127,500.
Anderson said the only potential cash flow issue would be during the first year.
City residents who connect to the water service will be required to pay a tap fee, which will be decided by the city now that the resolution has been approved. The tap fees will be distributed to Wayne Township to accommodate for the capital cost of the project.
Wayne Township agreed that all new development within the district will be required to connect to the water system and pay the tap fee.
“All and all, this looks to be a pretty reasonable agreement overall,” Anderson said. Anderson recommended the city approve the resolution.
Finally, the city will agree to automatic mutual aid for structure fires within Wayne Township.
The city council also approved other resolutions:
- To appoint and enter into contract the services of Sarah Mathews of Mathews Law Office as city attorney.
- To authorize the Museum Advisory Committee to implement a fundraiser for the Dowagiac Area History Museum, which will fund the construction of a second floor of the museum, among other projects.
- To confirm the special assessment role against properties remaining delinquent from payment of code enforcement and utility expenses.
- To pay a total of $818,810.21 in bills and payroll.