05/26/2006

Septic permit costs may soar

Fee may exceed $1,000 to finance septage plant

by brian mcgillivary

bmcgillivary@record-eagle.com

TRAVERSE CITY — The cost of a permit for new septic systems in Grand Traverse County could jump from $175 to more than $1,000 as officials struggle to finance their troubled septage treatment plant.

This week, the county's water and sewer committee — representatives of five townships obligated to cover any plant funding shortfalls — rejected levying a special tax assessment on property or mandating the pumping of septic tanks to raise additional revenue.

Instead supervisors for Elmwood, Garfield, Peninsula, Acme, and East Bay townships asked county employees to come up with a plan to pass the cost of the new $7.8 million plant on future home and business owners.

"It's less painful and easier to spread the cost over any new construction," East Bay Township Supervisor Glen Lile said.

The plant, part of which collapsed last June, a month after it opened, was supposed to pay for itself through user fees but lost $286,000 in 2005 and won't make enough to cover annual bond payments of about $575,000.

The amount of septage the plant received in the second half of 2005 was less than half the amount of waste projected by engineering firm Gourdie-Fraser Inc. and the county's septage project manager, attorney Michael Houlihan.

The county would collect a surcharge on the installation of new septic tanks based on tank size, according to the new proposal. The committee wants to collect enough money through the permit surcharge to cover its annual bond payment.

The townships will also ask the county board of commissioners for a loan to cover unexpected shortfalls and pay an outstanding bill of $148,000 owed the city of Traverse City. The city currently is charging 4.5 percent interest on the unpaid bill.

The county could raise rates to dump at the septage treatment plant but the average cost increase of $150 to have a tank pumped is one of the reasons the county isn't getting as much waste as projected.

The board will meet again at 9 a.m. May 31 at the county building on LaFranier Road to work out the details.