Additional information prompts switch –

The Piedmont Municipal Tax Review Committee recommended a “Yes” vote on Measure A, the Sewer Surcharge Tax. New information, however, has led one of the two members of the Sewer Tax Subcommittee to recommend voting “No” on  Measure A.

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Voters who are puzzled by Measure A, the Sewer Surcharge on their February 7 ballot to approve a 10 year surtax,  can read  on the Piedmont Patch the pros and cons presented at the Piedmont League of Women Voters Forum on January 12. The statements by Michael Rancer, pro, and Rick Schiller, con, describe issues related to the 50%  tax increase.

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Consultant's Estimate of EPA Compliance Costs

EPA Compliance May Cost Less than Public Projections and Voter Information Pamphlet Suggest

The cost of new EPA monitoring requirements for sewer replacement work have been projected as worst case and used in Piedmont’s Municipal Tax Review Committee (MTRC) Exhibits, the Voter Information Pamphlet and other public documents.  But cost estimates from the City’s Consultant may be lower than projections due to phased main rehabilitation work and emergency repair work already planned for included in the projections.

The EPA 2011 Cost Impacts prepared by the City’s Consultant , together with conversations with staff, have confirmed that the City Consultant identifies the cost of new EPA requirements as $1.5 million in initial set-up costs (during the first 4 years) and $165,000 in ongoing costs thereafter, as shown in the blue chart.  In addition, a “set aside” account is required for main replacement.

In contrast, setup costs (first 4 years) for EPA compliance  were initially projected by the City at $3 million in various public documents, because they include an additional $460,000 per year “set aside” for mains replacement and emergency repairs.   More importantly, ongoing costs of EPA compliance were projected to range from $300,000 to $600,000 to $1 million annually after the first 4 years.  (See Various Public Documents.) > Click to read more…

On the February 2012 ballot is Measure A, the sewer tax surcharge.  If approved by voters the current sewer charge of $471- $849 will be increased to a total of $707 – $1,274 depending on lot size (see chart below).  The surcharge will remain in place for 10 years with CPI increases.  (The sewer tax and surcharge are in addition to the City parcel tax of $342 to $572 which has a term of 4 years.) > Click to read more…