Cedar Springs Pump Station Funding

Cedar Springs Pump Station Funding

Hagerstown-Washington County Economic Development Commission Chair John Schnebly and EDC Director Tim Troxell brought a discussion on funding options for the Cedar Springs Pumping Station before the Board, and requested that up-front funding for construction of the station be provided.
The Cedar Springs Pumping Station is designed to serve the portion of the Newgate Industrial Park that cannot be served by gravity lines. The station must be constructed in order for further development to occur in the area. The current construction estimate is $1.9 million; of that amount, $300,000 has been secured in the form of a grant from the Appalachian Regional Commission. The remaining $1.6 million required would be funded from the County General Fund.
Budget and Finance Director Debra Murray told the Board that $811,000 of the needed funds would come from principal and interest set aside funds, and the remainder would come from GASB-45 funds. The money has been targeted for this purpose pending approval of the County Commissioners by reallocation of baseline costs currently in the FY '07 budget that will not be fully required until FY '08.
The money could be appropriated as an Economic Development Grant for purposes of providing the required infrastructure, or could have a long-term payback requirement based on per acre and per equivalent dwelling unit (edu) calculations. A $1,000 per acre fee could be assessed to recover the principle amount over buildout of the entire economic development region, or a $1,000 fee could be charged per edu, with the edu base exceeding the acreage used. A motion to grant funding for the project for economic development purposes with charges of $1,000 per acre or per EDU, whichever is greater, as proposed, was approved by unanimous vote. A Public Hearing will be held on the measure on November 28.