Earlier this week, KTNA reported on a loan request for the Talkeetna sewer and water system from the Mat-Su Borough’s revolving loan fund. KTNA’s Phillip Manning spoke with Public Works Director Terry Dolan about the work that is planned and the fiscal state of the system.
The Mat-Su Borough Public Works Department is asking the Borough Assembly for $214,000 to make upgrades to the Talkeetna sewer lagoon. If approved by the assembly, the funds would come from the borough’s revolving loan fund.
Public Works Director Terry Dolan says that the upgrades include a permanent aeration system to help the lagoon treat waste and electrical upgrades needed to power it. Terry Dolan says the borough is also pursuing a grant from the United States Department of Agriculture.
“USDA offers grants for this kind of system for low-income communities, but the process of being able to qualify for the grant requires a certain type of evaluation of the system and an evaluation of not only the economics, but the environment and that type of thing.”
The loan from the borough could be used as matching funds for that grant and would pay for the necessary evaluations.
The Talkeetna sewer lagoon operates under a permit from the State of Alaska. Two summers ago, the lagoon began significantly exceeding some of those permit requirements, particularly for fecal coliform. Last summer, temporary measures were taken to attempt to bring the system back to equilibrium, but permit violations continued. In December, the Alaska Department of Environmental Conservation sent a letter to the borough stating that it could be subject to fines of up to $37,500 per day of violation. Since then, borough and state officials have met and discussed plans to bring the lagoon back into compliance.
The reason for the loan request is that the Talkeetna sewer and water system operates at a substantial annual deficit, and there is not reserve fund for replacement, repairs, and upgrades. Beyond that, Terry Dolan says that the money isn’t there for even some routine tasks.
“Because the rates have been held down by the assembly, the money to do even the most routine maintenance that ought to be done hasn’t been there.”
Dolan says the assembly potentially has a good reason for that, and that raising the rates to the point where the system can pay for itself and have funds for repairs and replacements may not be feasible.
“When you think about how you pay for something like a $214,000 loan with only 200 customers, it very quickly becomes clear that it’s not possible.”
Dolan also says he has made three requests to the assembly for capital funds to repair the artificial wetlands that form part of the treatment system, which were damaged in the 2006 flood. All three requests were denied.
Terry Dolan says that any funding source allowed by state law is a potential means of paying for the system, but that the decision on what to do is ultimately up to the assembly.
“All of that is a political issue. I can give the numbers to the assembly, but they have to decide: Does it make more sense for everybody in the borough to pay for Talkeetna’s water; or does it make more sense for Talkeetna to pay for its own water?”
The assembly will vote on the loan request at next Tuesday’s meeting.
