Beecher Metropolitan District's
Up Coming Meetings
Wednesday, February 11, 2015 at 6:00 pm
Now accepting credit card payments - $3.00 processing fee applies.
Effective January 1, 2015 water and sewer rates for all customers connected to the water and sewer system of Beecher Metropolitan District will be increased by 17%. Effective 2016 through 2019, water and sewer rates will be increased 5% each year on January 1st. Below is an explanation for the need of an increase:
CURRENT FINANCIAL SITUATION
Our District currently has 1.2 million dollars in our fund balance which $370,000 of this total is earmarked for capital improvement. Our five year average annual operating budget is 2.8 million dollars with a five year average annual revenue stream of 2.5 million dollars. As our population continues to decrease at a rate of 1% per year, as it has over the past decade, our revenues from water and sewer sales and taxes continue to decrease. At the same time we still have the same size of aging infrastructure that continues to increase in operating cost. This all adds up to fewer people having to support the system resulting in increased cost.
Administration has focused our efforts into reducing operating cost over the past five years in an attempt to minimize the water and sewer rate increase going into effect. We have discontinued defined benefit pension plans for future employees, employees are now paying 15% of their health care costs, and there has been a wage freeze in effect for the past six years. We have reduced our staff from 15 employees to 10 cutting our total labor costs by $375,000. All of our pumps have had variable frequency drives installed to control our motor speeds to save on energy costs, and we continue to look at ways to save energy at all of our facilities as it pertains to lighting and heating.
Although we continue to look at ways to trim our budget, we cannot cut enough costs to cover our loss in revenue resulting in the need for the rate increase. However, if our population begins to stabilize and some of the water system improvement projects we have done begin to produce cost savings in our operating budget, the need for increases in the future will be reduced.
If we do nothing and the population continues to decrease at a rate of 1% per year, and start to operate at a deficit of over $400,000 per year as projected by the District’s CPA firm, we will deplete our current 1.2 million fund balance by 2018. If this were to happen and our District becomes insolvent, control of the system will go to the Townships. This would result in our system connecting to Genesee County Water and Waste as our water supply. The residents will have to pay a 3.2 to 3.5 million dollar capital improvement fee as well as pay higher water rates. Also, customers will still have to pay the Beecher sewer rate and pay for maintenance of the system either through the current staff or a contractor. We estimate an average monthly bill under this scenario to be $96.89.
2014 Water System Improvements
Beecher Metropolitan District
PROJECT NOTICE TO RESIDENTS
As a part of the 2014 DWRF water system improvements, all residential and commercial customers of BMD also known as Beecher Metropolitan District will be receiving new electronic Radio Read Water Meters. The replacement of the old analog water meters are mandatory for all customers serviced by BMD. This will come at no cost to you but will be paid for by a DWRF loan.
Beecher Water has contracted the installations to a local plumbing company by the name of Tower BHP, LLC. A representative will contact you to schedule an appointment to change your water meter. Customers are able to call and set appointments without waiting by contacting Duane or Ken at Tower BHP, LLC. 810- 789-3212.
Appointments must be kept in order to continue water services to your facilities. ALL CUSTOMERS SHOULD CONTACT BEECHER WATER AND UPDATE THEIR CONTACT INFORMATION IMMEDIATELY. Customers that cannot be reached by phone will be contacted by Tower BHP by way of written letter. After two (2) failed attempts to make contact, keep an appointment or allow the meter change your water services will be turned off by Beecher Metropolitan District.
The average meter change out for residential customers will take approximately 30 minutes. Commercial change outs will vary greatly. The service technicians from Tower BHP should be wearing I.D Badges. Please feel free to contact Tower to verify technicians if needed. All questions about scheduling or workmanship should be directed to Tower BHP.
For questions regarding the project call Beecher Metropolitan District at 810-787-6526 extension 101 for Tyrone McCloud or extension 102 for Kevin Forbes.
Thank you and we appreciate your cooperation in these necessary upgrades.
Beecher Metropolitan District,
************************************************************ Public Notice
Beecher Metropolitan District has a Board of Commissioner vacancy representing Genesee Township. Any qualified elector of the District who is of the age of 18 or more years, and who has resided in the District 30 days, and is a taxpayer shall be eligible for the Office of District Commissioner. No member of the District Commission shall hold any State, County, or other District office during his/her term as Commissioner. Interested parties shall submit letter of interest including name, address, and reasoning for interest in Board vacancy. Mail to Beecher Metropolitan District, 1057 Louis Avenue, Flint, MI 48505,
Attn: Board Vacancy. The Deadline for letters of interest is Wednesday April 1, 2015 at 4:30 pm.