As a water professional I believe that I have some knowledge and experience worth sharing.
First and foremost, all financial transactions related to the existing Dobbs Street water plant are included within Roswell’s Water Enterprise Fund. This is a self-funded enterprise and all the costs associated with the maintenance and operations of that plant are to be borne exclusively by its customers through the rate charged for water.
A new plant is projected to cost in the vicinity of $15 million and to date the city has yet to decide whether the loan will be for 10 or 20 years. Adding to that initial expense, there could be 4.5 percent to 5 percent interest rate compounded over the life of the loan, adding additional interest costs of some half a million dollars. That totals appx. $15.5 million divided among ONLY 5,600 customer accounts!
Keep in mind that the cost of this new plant is to be funded using a “revenue” bond that can unilaterally be passed by Roswell City Council without voter approval and a revenue bond can only be secured with guaranteed REVENUES, which will undoubtedly come from higher utility rates.
Maybe, just maybe, the most critical information, like an actual "RATE ANALYSIS," will be forthcoming at that initial presentation to be held tonight at 8 p.m. in Room 220 immediately following the regular Roswell City Council meeting.
I will follow and report on the proposed water plant expansion project going forward.