million targeted for water system upgrades
funds always part of agreement with suburbs
Green Bay Press Gazette
A $6 million upfront payment by Green Bay to nine suburbs
in 2005, the first year of a proposed water deal, is only
a little more than the new revenue the deal would generate
for the city in the first year.
a nonissue for the utility given the income stream thats
going to be created immediately, said Green Bay
Mayor Paul Jadin.
The $6 million would be earmarked for water system upgrades
in the suburbs needed to connect to city water.
The suburbs, operating as the Central Brown County Water
Authority, voted last week to endorse a plan in which
the suburbs would pay the city $1.23 per 1,000 gallons
for treated drinking water starting in 2005.
The endorsement was largely symbolic, since only a vote
by the authoritys member communities is binding.
But the endorsement was a key step in talks that began
20 months ago.
The authoritys member communities are Allouez, Ashwaubenon,
Bellevue, De Pere, Hobart, Howard, Lawrence, Ledgeview
and Scott. The nine, plus Green Bay, are home to more
than 195,000 people 86 percent of Brown County
The nine suburbs estimate their water use at 12.29 million
gallons per day in 2005, or nearly 4.5 billion gallons
per year. That volume translates into about $5.5 million
in annual revenue for the Green Bay Water Utility at the
proposed $1.23 per 1,000 gallons rate.
The $6 million payment was the last term of the deal to
be ironed out, though not necessarily the most important.
The payout also wasnt new, at least in principle.
was always part of the deal, said Len Teresinksi,
water authority president.
The city accepted long ago the idea that it would need
to give the suburbs a hand with the transition to city
water, Jadin said.
been there since, probably, two years ago, except that
we cut $1 million off it, Jadin said.
Alternative versions of the $6 million payment called
for the city to pay the suburbs $7 million, but according
to formulas that created two separate payments years apart,
the second coming as late as 2015. The authority opted
for a quick nickel over a slow dime.
tomorrows dollars, youll need more,
Jadin said its too soon to commit the water utility
to a funding source for the $6 million.
have some reserves that might be used, and they of course
have the option to borrow for that infrastructure, just
like they will for the raw water line, he said.
The Green Bay Water Utility plans to build a second Lake
Michigan pipeline at a cost of $25 million to $30 million
next year with or without a deal with the suburbs. Bundling
pipeline borrowing with the $6 million might make sense
at current low interest rates.
sure it would become part of a bonding package along with
the pipeline, said Bill Nabak, water utility general
Teresinski said the single, upfront $6 million payment
had the virtue of simplicity the declared goal
of negotiators in recent weeks.
significant movement we made (in negotiations) over the
last month was based on simplicity, Jadin said.
the compromise was, Lets keep it simple.
Were going to let you use this for your infrastructure,
but were going to take a million dollars off it.