By Tina Alvey
Register-Herald Reporter
June 29, 2009 09:26 pm
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LEWISBURG — With bids in hand, Mayor Debbie Fogus appealed in vain to the Greenbrier County Commission to start the bond process that would finance a new sewer plant for White Sulphur Springs.
The current plant has been in violation of Department of Environmental Protection regulations for years. Fogus told the commissioners Monday morning the only thing keeping monumental fines at bay is the plan agreed to by city and county officials to finance a new plant through tax increment financing (TIF) funds.
With TIF, infrastructure projects can be paid for with public bond revenue, with the stipulation that the bond will be repaid through new property tax revenue acquired from the district that benefits from the infrastructure. In the case of White Sulphur Springs, the tax district encompasses the Greenbrier Sporting Club development.
Because White Sulphur is a small city, it could not apply to the state on its own for a TIF. Thus, the county stepped in and now controls the project’s purse strings. In three years, the White Sulphur TIF fund has accumulated around $6 million, according to Fogus.
Believing all the pieces were finally in place, Spa City officials put the sewer plant out to bid.
Fogus said all three bids opened on May 12 were in the same range, close to $18 million.
In addition, the city has already funded an associated collection line project to the tune of $4 million.
“We raised sewer rates twice on our citizens to pay for it,” the mayor pointed out. “We’re trying to do our part.”
She warned if the commissioners delayed instructing the county’s bond counsel to start the paperwork to issue the bonds, they risk the bids received last month expiring before the process is complete.
“It’s going to end up costing us more in the long run,” she cautioned.
Commissioner Brad Tuckwiller made a motion to instruct Steptoe & Johnson to proceed with the bond paperwork, but commission President Betty Crookshanks raised several objections.
Crookshanks said she prefers to wait and see if part of the project’s funding can be secured elsewhere.
An application for $1.9 million in federal stimulus dollars is now pending at the West Virginia Development Office, Fogus noted. Development officials will meet next Wednesday to consider the application.
Crookshanks said she also wants to take another look at the costs associated with the sewer project to see if any savings can be identified.
After initially indicating she would abstain, Commissioner Karen Lobban voted with Crookshanks to delay action on Fogus’ request.
A special meeting of the commission will be July 9 at 9 a.m. to reconsider the issue.
In other business:
-- The commissioners voted unanimously to table Ronceverte’s proposed annexation of the Organ Cave area.
-- Commissioners accepted payment totaling $735,000 from the Greenbrier County Board of Education in payment for 19.6 acres of land. A new Lewisburg Elementary School will be constructed on the lot, which is adjacent to the Greenbrier County Library.
School Superintendent John Curry said he expects site preparation to begin in August. The entire project should be completed in 18 months, he said.
-- Douglas Prichard of Oceana spoke to the governing body about possibly alleviating the county’s rabies problem through animal trapping. He said his organization, the Smokie Coyote Hunt Club, trapped 100 raccoons in Summers County last year. In addition to raccoons, the club members trap skunks, cats and coyotes.
— E-mail: talvey@register-herald.com
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