Bond election set for Tuesday

SANDPOINT — City voters will head to the polls Tuesday for a bond election that could decide the fate of Sandpoint’s water system.

If approved, the $20.5 million bond will be used to overhaul the city’s lake water treatment facility. The renovation would include a switch from the current sand and coal water filters to more advanced membrane cartridge filters, while also expanding treatment capacity from 3 million gallons per day to 10 million. The plan also calls for a larger transmission pipeline for raw water, as well as rehabilitation of the plant’s chemical and operations buildings.

While the bond will ask for $20.5 million, Public Works Director Kody Van Dyk said the actual cost will be much lower.

“When we initially set the date for the bond issue, we used the number that was in the water master plan, which was $20.5 million, as the upper figure for what the city could borrow,” he said. “The reality of it is that the quotes that came in, the construction cost is going to be significantly less, in the $12 million range.”

If the bond passes, the city will likely receive federal stimulus dollars from the U.S. Department of Agriculture’s Rural Development funds, which could cover 30 percent of total costs.

The interest rate is not yet locked in, but Van Dyk said it would be 4.125 percent or less. The money would be paid down over a 20-30 year period with increased user fees. Fee increases will depend on the final interest rate, but users would likely see their water bill jump by 25-30 percent, which Van Dyk said pencils out to a $5 to $6 monthly increase for typical customers.

All water customers will see increases, but only Sandpoint residents are allowed to vote on the matter.

If the bond is shot down, Van Dyk said the city can go a number of directions.

“There are three options,” he said. “We could do nothing. We could hold another bond election at the next available date, which I think is in November. Or we could go to a judge for judicial confirmation.”

Polls open Tuesday at 8 a.m. and run until 8 p.m. at Sandpoint City Hall. Absentee ballots must be received by the city clerk by May 26 at 8 p.m.