SWSD seeks OK to borrow $850,000

SAGLE — A judge this month could end the six-year building moratorium at Southside Water and Sewer District, allowing the beleaguered utility to accept sewer applications on a first-come, first-serve basis.

As part of a judicial confirmation process, First District Judge Steve Verby could decide at a May 19 hearing if the water and sewer district should be allowed to borrow $850,000 without putting the measure before voters.

A mandatory public notice period will end this week, said Jim Haynes, Southside’s district chairman. After that, it is up to Verby to decide the case during the court proceeding, or within 42 days of the hearing.

“It’s all set to go,” Haynes said.

The district chose in March to move ahead with the judicial confirmation process that bypasses voters and asks a judge to allow the district to borrow $850,00 to fix its sewer system.

The district filed a brief explaining its need to incur debt for an ordinary and necessary expense.

No petition opposing the district’s plan has been filed, according to Southside.

If a petition opposing the $850,000 expenditure is simultaneously filed, the judge could take the matter under advisement before rendering a decision.

“So far, I haven’t seen anything like that happening,” Haynes said.

If approved, the latest plan would use money available from Idaho Department of Environmental Quality to repair a lift station and build a drip irrigation system that would allow the district to use more of the land at its 40-acre application site west of Highway 95 for dispersal of treated waste water.

In addition, some of the money would be used to purchase adjoining property.

If Judge Verby rules against the district, DEQ, which has already approved a low interest loan for Southside, would try retaining the money for the project for next fiscal year, engineer John Tindall of DEQ, said.

But there are no guarantees, he said.

“They need to get this judicial confirmation in order for DEQ to provide them with the loan funds,” Tindall said.

If the judge decides to approve the request, repaying the 0 percent interest, 20-year loan could raise rates in the district by as much as $8.42 per month.

“It’s a good program,” he said. “It can work really well for them, I think.”

The money, if approved will be available for the district’s next fiscal year beginning in June.

The district had anticipated spending $1.2 million, but revamped its figures and lowered the amount.

If it gets a green light the district would ask builders, many of whom have been prohibited from using their Sagle property because of an overloaded sewer system, to file for the approximately 50 water and sewer permits that the process will initially make available, Haynes said.

“We will take people on a first-come, first-serve basis,” he said.

If the moratorium is lifted, it is a partial fix in a district where 186 users have paid for a hookup, but have not been served by the district.