Additional Q & A

Question: Why will the owner of a seasonal cottage which is only used a few times a year pay the same monthly fee for sewage treatment as a full time resident who uses the system everyday?

Answer: There is no way to monitor the use of each cottage or house unless each residence is individually metered.

The cost to individually meter each residence would likely add $1,500-$2,000 per property to the total project cost because the system design would have to be changed plus there would be an additional cost for the meters.

In addition, we would have higher accounting/billing costs because each owner would pay a different amount each month for usage, and each owner's sewer bill would have to be separately calculated rather than billing everyone the same amount per month. Also, the meters would have to be read by paid staff.

The installation cost for the meters would be paid by every property owner, and the costs for billing and meter reading/maintenance would be spread among all property owners equally.

True, the monthly fee would go down for those owners who do not use their cottage very much, but the additional costs of having individual meters would negate any savings and in fact the cost upfront will increase and the cost monthly will actually increase.

Question: I keep hearing that condos could built on the lakes if the sewer system is approved and that the developers are only waiting for the sewer system so that they can begin construction. Is this true?

Answer: No, this is not true. Please contact Brooks Twp. officials for the facts. The approvals any developers would need would have nothing to do with whether or not we have sewers or septic systems. Further, there are no plans for condos around the lakes, and this sewer project has nothing to do with any kind of planned or proposed development whatsoever. This is a "scare tactic" that is being spread by some people who are opposed to the sewer project and want to confuse residents with untruths.

Question: Why are vacant lots not being assessed?

Answer: Vacant lots are not assessed for a very good reason -- the owners get no benefit from the sewer until and if they decide to build a home on their property. When and if they do, they will pay to hook-up and pay the full assessment in cash to the sewer district at that time. These payments will reduce the costs of operating the system for all parties on the system.

Question: I have heard that the cost to hook-up to the system is $10,000 on top of the assessment for the sewer system and that I must have my entire septic tank and drain field taken out, as well as all of the pipes in the ground. Is this true?

Answer: No, the average cost has been $2,000 per parcel on other lake sewer systems installed. Some owners will pay less and others more, depending on how far their home is from the sewer line.

No, you do not have to have your septic tank or drain field removed or the pipes removed from the ground. The requirement is that you must have your septic tank pumped until completely empty, then it must be filled with sand and the top sealed, with all lines to the septic tanks and drain field disconnected – so they cannot be used again.

Question: Must a licensed contractor do the work?

Answer: Yes, a licensed contractor must complete the work and certify that the septic system has been properly abandoned. The hook-up to the sewer system must also be done by a licensed contractor to make sure it is done correctly. Part of the hook-up cost is excavating to the road where the sewer line is located, and homeowners can save money by excavating for the line from the house to the road by themselves. Everything else must be done by a licensed contractor.

Question: Does the type of financing that the townships and County ultimately obtain to pay for the sewer system change what we will pay?

Answer: It does not change the individual assessment of $19,481 per developed parcel, and if you decide to pay the full amount upon installation, then the financing does not impact you.

If you do not pay the entire assessment up front -- or -- if you do not pay the assessment off early -- or -- if you do not pay extra each year (all of which you are allowed to do), then the type of financing can make a big difference in how much interest you will pay.

There are three different sources of financing that the townships and County can choose:

The State Revolving Fund
Rural Development Agency
Conventional Bond Financing

Each type has different interest rates, different terms, and different conditions.

The townships and County will seek the optimal financing for the project which has the lowest cost for property owners.

There are also two types of loan terms:

A fixed payment loan -- This is like an auto loan where the payment is always the same, but as the loan is paid off, more principal is paid and less interest is paid. The annual payment stays the same.

A fixed principal/declining payment loan -- The payment starts at a higher amount and declines each year until the loan is paid off. Annual payments are higher at the beginning of the loan term and decrease each year until the loan is paid off.

The less-costly loan in the long run is the fixed principal type with a declining payment (which is typical of the conventional type financing).

An example of payments under each financing scenario is provided below:

		Fixed Payment Loan			Fixed Principal/Declining Payment Loan
	State Fund 2.5% Rate 20 Year Term		Rural Dev. Fund 3.75% Rate 40 Year Term	Conventional 4.5% Rate 20 Year Term	State Fund 2.5% Rate 20 Year Term	Rural Dev. Fund 3.75% Rate 40 Year Term	Conventional 4.5% Rate 20 Year Term
1^st Year	$1,249.65		$947.93	$1,497.62	$1,461	$1,217	$1,850
5^th Year	$1,249.65		$947.93	$1,497.62	$1,363	$1,144	$1,675
10^th Year	$1,249.65		$947.93	$1,497.62	$1,241	$1,053	$1,456
15^th Year	$1,249.65		$947.93	$1,497.62	$1,120	$961.87	$1,237
20^th Year	$1,249.65		$947.93	$1,497.62	$ 998	$870.56	$ 1,017
40^th Year	N/A		$947.93	N/A	N/A	$487.03	N/A
Total Cost with Interest	$24,993		$37,917	$29,952	$24,594	$34,457	$28,685

Question: Are grants available to reduce the overall cost of the sewer project?

Answer: There are grant programs which may (or may not) be available to the townships and County when the sewer project is approved. The townships and County are expected to apply for grant monies, and if their request is approved and the grants received, those funds would reduce the overall cost and in turn, the individual assessments.

Question: Have any studies been done to show how many properties meet the Health Department requirement that septic systems must be at least 100' from the lake? How many septic systems around the lakes are at-risk for failure?

Answer: Yes, a study, “Hess & Brooks Lakes On-Site Sewage Survey Project,” was conducted by Ferris State University in 2001 in cooperation with District Health Department #10. You can read the full report by clicking here.

The results of the study indicated that of 603 lakefront properties, 336 were “high risk.” Another 134 were "medium risk," and 133 "low risk."

The study also examined 83 properties in detail and found that of those 83, 10 had septic systems less than 50 feet from the lakes, and 40 septic systems were between 50’ and 100’ from the lakes. Only 22 were 100’ or more from the lakes, as prescribed by Health Department and township ordinances. For 7 properties, there was no information, and 4 properties had no septic system.

This report provides significant information on many of the septic systems on the lake from Health Department files. It is important to note that the Health Department does not have information on all septic systems because many of the systems were installed prior to the time that the Health Department began issuing permits in the 1970s.

Question: Does the Health Department support the sewer project?

Answer: Yes, District Health Department #10 (which serves Newaygo County) is in favor of the project. In fact, Tom Reichard, the Environmental Health Director, has written a letter of support. Click here to read the letter.

Question: Is there any comparison data on Hess or Brooks Lake water quality compared to other lakes in Michigan

Answer: Yes, Hess Lake has participated in the Cooperative Lakes Monitoring Program (CLMP) since 2001. CLMP collects the data and issues an annual report comparing lake water quality in various categories.

The 2007 report can be found here. Prior years' reports are available on the web site of the Michigan Cooperative Monitoring Program (click here for that site).

The report provides significant information on the high levels of phosphorus and chlorophyll and the lack of transparency (clarity of water) in Hess Lake compared to other participating lakes in Michigan.

Question: Why not meter sewer use individually?

Answer: The cost to install separate meters on each individual pipeline leading from the homeowner's property to the grinder system would have added somewhere between $1,000 and $1,500 per home owner or between $1-$1.5 million to the total construction cost. In addition, the monthly fees to collect the meter readings, break up the billing for each resident, and maintain the meters, would have added another $10-$15 per resident per month. The up-front costs and on-going costs negate any saving for those with less volume use vs. those with higher annual use. In the end, low volume seasonal users would pay about the same ($38.00 a month) plus the added cost up-front, and high volume users would pay even more. In the words of the engineering firm, "This (individual metering) would just waste money for the lake residents".

Question: Why are we not doing water at the same time?

Answer: The cost for running water lines from the City of Newaygo would require different pipelines of different sizes and different types of main lines and pumps, and the cost would likely have added another $20,000+ to the assessment, doubling the construction costs and the monthly fees. This would not have been made economic sense, and it does not cure a major problem. A water system would be more of a convenience than solve a serious issue like the sewer system will do.

Question: I have heard that the real reason behind the sewer project is that there are plans to develop condos on the lake. Is this true?

Answer: ABSOLUTELY NOT! There are no plans for condos around the lakes, and this sewer project has nothing to do with any kind of planned or proposed development whatsoever. This is a "scare tactic" that is being spread by some people who are opposed to the sewer project and want to confuse residents with untruths. Again, there are no plans to develop condos or anything else on the lakes. To confirm this information, check with township officials.

Question: Is there a way to add a paved walking and biking path along the roads on Hess Lake when the sewers are put in? It is very dangerous for walkers, runners, and bikers on the narrow roads around the lake?

Answer: This is not a part of the sewer project because it involves only Hess Lake. If enough residents are interested, this would require a separate petition to the townships; quotes for the additional paving would need to be obtained, and approval by the county would be needed to put the path in the road right-of way, but it could be done with enough support and a willingness of Hess Lake residents to pay the additional assessment.

Question: Does the petition require us to use the City of Newaygo's Waste Water Treatment Plant or could we decide to build and operate our own treatment plant?

Answer: While it is recommended for many reasons (including cost) that we use the City's treatment plant, the township boards and new Sewer Authority ultimately will make the final decision about where the waster water will be treated and whether to operate our own plant or contract with the City of Newaygo. This decision will be based on the costs, operational efficiencies, and the long-term interests of the lake residents.

Additional Questions & Answers

Last modified: 06/30/08