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Financial assistance plan revisited for costly sewer expansion project - mlive.com

KALAMAZOO COUNTY, MI — A number of Oshtemo Township residents have spoken up about the high costs associated with an upcoming sewer expansion project and township officials presented an updated draft of a policy to help with the costs.

The financial assistance ordinance was drafted to help township residents with the costs and fees associated with the $28 million, two-phase expansion project to bring 890 homes from septic tanks to sanitary sewer. Construction is slated to begin in the spring, officials said.

The costs will vary from home to home, but homeowners will be required to pay a connection fee and pay a contractor to hook sewer up to the home. Officials say the average connection fee will be about $11,000 and hook-up will be about $5,000.

Many homeowners have expressed concerns associated with the finances and township officials are working on an ordinance to help homeowners in need of financial assistance.

A draft of the sanitary sewer assistance ordinance was first presented by township attorney James Porter at the Feb. 11 township board meeting, then discussed a new draft at a meeting on Tuesday, Feb. 25.

Related: Hardship help mulled for residents worried about sewer project’s out-of-pocket costs

Porter said in order to come up with a more comprehensive draft relevant to the population, he worked with Peter Haefner, a forensic accountant, and looked into township demographics related to household income levels.

The ordinance would have options for both deferment or abatement dependent on the homeowner’s situation and would be reevaluated yearly, or with any extraordinary circumstances.

An edit to the draft required that applicants prove that they are not able to receive funding from the U.S. Department of Agriculture or state funded programs before applying to for township assistance to “try to maximize the township’s resources," Porter said.

The qualification guidelines are still under consideration, he added.

“So, where is that line to determine who we get hardship financing to and what would that include?” Porter said. “I think this is the beginning of the conversation.”

With discussion of deferment and abatement, Trustee Ken Hudok raised the question of how that could impact the township budget. The project will be funded by a USDA loan and with options for financial help, costs could fall back onto the township.

“Have we had this by our financial advisors yet?” Hudok asked. “I think we need to know the true effect and the risk to the payback.”

The addition of having homeowners prove they cannot receive assistance from other funding sources could be a barrier for some homeowners, Trustee Cheri Bell said. She compared it to someone requesting heating assistance then having to go through a number of different agencies before becoming eligible.

“The process is stringing individuals through bureaucracy and they have already experienced difficulty gaining access to resources,” Bell said.

Township resident Anna Versalle said she has been having conversations about financial hardship with board members due to her student debt.

“It has been really frustrating dealing with this whole thing,” Versalle said. “I think they’re going in the right direction but there is still a lot of work to do. I am happy they are starting to take notice and to listen.”

Parts of the sewer project are hitting neighborhoods with retired residents and residents with a fixed-income, Paula Rumsey said. She expressed frustration from a lack of communication with homeowners during the planning process.

“The costs were shocking news for us,” Rumsey said. “Sewers are great, but they’re going about it the wrong way and putting the burden on our backs.”

The next township work session and board meeting are set for 6 p.m. and 7:15 p.m., respectively, on Tuesday, March 24.

Also on MLive:

Cost to homeowners central to concerns over $28M township sewer project

Plainwell granted $5.1M to demolish old paper plant buildings

Schoolcraft Township in Kalamazoo County asks voters for ‘charter’ status

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