New water lines won't increase rates for current ratepayers

PALMER -- Though connection charges and hookup fees might be imposed on customers joining the new Palmer water and sewer lines to the Mat-Su Valley Medical Center, these costs won't affect current ratepayers, Palmer officials said.

"I'm going to do everything I can do to make sure that this cost doesn't get passed on to the current ratepayers," said Palmer City Council Member Tony Pippel, at Tuesday's meeting of the Palmer City Council.

"This is a project that's growing on us in size and cost," Pippel said. He went on to say that funding was coming from a variety of sources and the precise dollar amounts were still in question. Pippel emphasized the need for having enough money to complete the project under a variety of contingency plans.

Palmer City Manager Tom Healy said that federal funding would cover 75 percent of the cost of the new line regardless of the amount, and would thus provide more money if the total cost were higher.

Healy said the question of whether service to the hospital alone will cover the remaining costs of putting in the line is uncertain, and that the city would likely have to rely upon new users connecting to the line to cover its investment.

Council Member John Combs agreed with this estimation. "I don't think that people will be opposed to it once they figure out that their rates won't increase," he said. "Those who benefit from the new line are going to pick up the costs."

Pippel said that he thought the current estimate for the project, which placed total cost in the vicinity of $7 million to $8.5 million, was a little low considering the scope of the slated improvements. He suggested applying for a $2.5-million rather than a $2-million bond to cover additional costs.

"If [Palmer residents] will vote for $2 million, they'll vote for $2.5 million," said Pippel, who added that he believed his constituents were in favor of the improvement and would support it on the October ballot.

Healy said Palmer has made significant progress from an engineering, planning and design perspective. A preliminary cost estimate is currently being prepared, Healy said, and once it gets on the table the council will have a little more information to draw upon when making a bond decision. Once this study is completed, the council could consider how to bring together additional funding for the project.

The city has already received input from a number of residents concerning the possible routes for the water and sewer lines. If input received from these citizens at the July 8 public open house is any indication, a southerly route following the Glenn Highway to the new hospital site is more desirable than a northerly route cutting across several miles of wilderness.

The council voted to delay action on floating a bond until its next meeting on July 27, though Healy warned that waiting past that date could jeopardize funding.

Contact Daniel Spoth at daniel.spoth@frontiersman.com.