|Wed, Oct 22, 2014 08:44 PM
|Issue of October 15, 2014
December 04, 2013 | 11:25 AM
The Harrison County Regional Sewer District may soon have a cash-flow problem and plans to secure a line of credit from First Harrison Bank to make sure operations are unchanged. The district board discussed the matter at its regular monthly meeting Nov. 20.
The shortage stems from a number of reasons, but mainly because of the method of reimbursement from the Economic Development Agency for the New Salisbury sanitary sewer project. The district board has to pay the expenditures to the contractors upfront, then it requests reimbursement from the EDA, which provided a 50-percent cost-share grant for the project. In the meantime, the district still must pay its other bills, such as those related to the operation of the treatment plant at Berkshire Pointe east of New Salisbury, out of the same fund.
The second issue is the continued cost of sludge removal from the Berkshire plant, which is more than was estimated, sometimes significantly so, on a month-to-month basis.
Also, the owner of the mobile home park, SSK, is now four months behind on its payments to the district, a total of about $17,000, according to RSD treasurer Gary Davis.
Focusing on the New Salisbury project only, the district would have enough money to be OK, barring any unforeseen problems, said district consultant Bob Woosley, who is with Heritage Engineering. But, with other costs unrelated to the project coming out of the budget, the district elected to move forward with seeking a line of credit.
The only other options discussed were going to the county council or economic development for the funding. Davis said the county expects the district to be nearing self-sufficiency, so it would be a tough sell, and economic development has most of its funding tied up in the Areva pharmaceutical project near Lanesville.
"The good news is, we've got no debt yet to pay off," Woosley said of the New Salisbury project.
As for the progress with the New Salisbury project, Woosley said the contractors are moving quick and are near completion of their work. He said businesses could become on-line before the end of the year, weather permitting.
Woosley addressed a comment from this newpaper's Live Wire section, which said some businesses received special treatment when it came to hook-on fees.
"There are no special deals out there," Woosley said.
He said the caller may have been confused about the agreement between the district and businesses that donated easement property, which had their $5,000 hook-up fee waved.
"But that was offered to everyone, and everyone agreed to it," he said.
The district did not need easements from a couple of businesses, and Woosley said they probably could have explained the easement agreement to them, just to avoid confusion.
The board's next meeting will be Wednesday, Dec. 18, at 8:30 a.m. at the Harrison County Community Foundation building in Corydon.