Germantown Boondoogle to sell Water to Richfield, and Increase our rates

 

• Germantown/Rockfield•18h

Thanks for putting this together, it is quite concerning. Next gen housing sounds like a great way to destroy Germantown. And we are profiting from selling our precious water to Richfield, but our costs have to go up? And what do WE get for building infrastructure for the orwellian Holy Hill tech park?

2

Scott Louis

Author

• Friedenfeld/Kinderberg•11h

Steven

Good question. The Richfield IGA referendum (which passed narrowly) sounds good in theory. We bring our water and sewer lines to a connection point in the Holy Hill area, and Richfield uses it to build out their industrial parks (initially) and go on from there. And our Village touted $8-10 million in new infrastructure Richfield was paying for that the Village did not have to. What they did not know (or tell you) is the tremendous cost Germantown is looking to spend in their own infrastructure costs, most of which would NOT have been necessary (not now, and would have happened slowly over time, allowing us to PLAN for it) if we had not agreed to the IGA. $26 million in NEW costs, likely more. This will prove to be a financial disaster for us. We can't keep up with our current aging system and its costs. We started putting down sewer and water in the mid 80's so now those pipes are 40 years or and maintenance needs are rising substantially. Germantown did a poor job of negotiating the terms of the IGA, as we agreed to do ALL MAINTENANCE on any new Richfield sewer and water lines FOREVER (no sunset provision). How is that a good deal for us? We will NEVER see enough revenue from this to match the cost of doing it. Right now, our water utility is running in the red to the tune of a little over $1 million a year and we can't upcharge the water we provide to Richfield due to limits placed on the PSC. Richfield definitely go a heck of a deal!! What we "GET" for the ugly structures in the Holy Hill area are the opportunity cost losses of property tax revenues tied up in the TIDs until 2029 at the earliest. NO new tax revenue to help pay for the ever increasing costs of services.