1998 Newsletter McNulty WATER ASSOCIATION 34240 Millard Rd. Warren OR 97053 RETIRING THE MORTGAGES fast. - - -FEBRUARY IS THE LAST OF THE SURCHARGE - - - In 1996 we were forced by government lending agencies to take rapid action to pay back some $166,000 in debt owed by McNulty Water. These debts were 30 year loans that financed the construction of much of the water system. Some were old - 1964 construction as the system was first built. Some were newer - the Stone Road well & pump in 1977. At the February 1996 meeting, those members present voted overwhelmingly to retire the debt rapidly. The board implemented an Eight Dollar a Month SURCHARGE on each meter. This extra $24 per billing brought in more than $17,000 per billing, all of which was used to retire the long term debts. ALL but one of the six bonds have been paid off in 1996 and 1997, with the SURCHARGE money. THE $24 SURCHARGE WILL SOON BE DISCONTINUED. ALL GOVERNMENT LOANS WILL SOON BE PAID OFF COMPLETELY. WE CAN COMPLIMENT OURSELVES FOR HELPING TO RETIRE THIS DEBT. THIS WAS THE LAST OF OUR LONG-TERM DEBT. NO RATE INCREASES. The board is pleased with the willingness of the majority to get this financial burden behind us. The board has felt that we should continue to try to get along with NO INCREASES IN BASIC RATES. ANNUAL PUBLIC MEETING of the McNulty Water Association Tuesday, February 17 , 1998, 7:00 PM McNulty Office, 34240 Millard Road All are welcome. HIGHWAY 30 CONSTRUCTION The highway project presented us with an extreme financial challenge. Short Story - - - All Done - $260,000, - - - All Paid for. ALL CROSS-CONNECTION PREVENTION DEVICES ARE TO BE TESTED IN THE MONTH OF MARCH. Each owner of a back-flow prevention device must have the device tested before March 31. Your report from a certified tester must be on file at the McNulty Water Office by March 31. Otherwise, the law requires the shutoff of your water service. It is the owner’s responsibility to see that the white copy of your test is turned in to McNulty Water by March 31. AMONG THE QUALIFIED TESTERS: Back Flow Management 1-800-824-4385 Water Metrics 1-800-523-1884 Robert (Bo) Laird 397-4677 Steve Wagner 641-4983, 626-8783 Richard Sattler 537-0334 or 351-5321 Above notice is for those 35 or so members who have legally required cross connection prevention devices. Melvin Olson - Cross Connection Inspector A POSSIBLE NEXT STEP TO FAIR CHARGES By Noel Thompson, McNulty Board As we see our financial position improving, I feel it is time to look at the rate structure in hopes of possible changes to make the charges MORE FAIR. Let’s consider ways to make the charges fit the costs more evenly. We have a set of rates that are at the right total level, compared with costs and with other similar water utilities. I would not want to change the total income appreciably, now that the Surcharge has been removed. (Note that in comparing our rates with those of St. Helens, we must consider the OUT OF TOWN St. Helens rate, which is TWICE the city rate, and which is less reliant on the Property Tax base.) The challenge to this board is to find the way to best administer the available funds. We must no longer continue billing practices that are too strict, under the excuse that “otherwise we will go broke.” I wish to ask the owners of this association if they can find the compassion and fairness to provide for CANCELLING THE BASIC RATE CHARGE AT METERS WHERE NO WATER IS BEING USED AT ALL. These cases include: SNOWBIRDS who are gone for months, EMPTY HOUSES which may be unrented or waiting for refurbishing, METERS WITH NO HOUSE AT ALL such as are owned by those who helped fund this organization long ago by buying more meters than they need, and who paid the System Development Fees for meters that have never been used. I feel that it would be proper to CHARGE NO FEES FOR METERS THAT USE NO WATER IN ANY GIVEN QUARTER. To keep the procedure simple, we would simply notice meters which are not being used, as they are read quarterly, and SEND NO BILL. I HAVE STUDIED THE IMPACT OF THIS MINOR BIT OF CHANGE. The loss of revenue would be LESS THAN TWO PERCENT. Other revenue changes might be suggested, such as reducing the minimum rate for ALL. It would take a much more detailed view of the future to make an appreciable reduction in the minimum without hurting our continuing growth and maintenence. I would not advise reducing the minimum at this time. I INTEND TO PROPOSE, at the yearly meeting, A CANCELLING OF THE MINIMUM BASIC CHARGE FOR ANY QUARTER IN WHICH WATER IS NOT BEING USED THRU ANY GIVEN METER. It has been good to have a rather high monthly minimum. The result has been a stability of income in the winter months, when little water is used, while our expenses go on as usual. However, charging for meters which are not being used seems to me an excess which can not be justified. You have already paid a System Development Fee (we used to call it a Hookup Fee) when you joined the Association. Our prudent use of that money should be enough to cover the very few idle meters. ========================== I would also like to remove the one dollar booster charge for those North of the fairgrounds. We can’t measure our different costs to such fine detail. For McNulty Water Noel Thompson, 397-2679 ========================== WHAT IS GOING ON? The Robinette tank has been refurbished, including repairing bullet holes, adding a twelve inch outlet to improve water flow, and painting. A ten-inch pipe from the Robinette Tank, down the hill to Hankey road, is coming, as part of this refurbishing. Our prudent availability of water was evident in September 1997, when the Fire Dept. needed, and got, 1000 gallons per minute to fight the fire which destroyed the Luttrell barn. A main line from Maple Street to Echo Lane will increasee our capacity to supply homes and hydrants along the highway. ========================== McNulty Board: Richard Louie, Mae Mowrey, Walt Neaderhiser, Noel Thompson and Claudia Weiss. Significant Others: Ben Erlandson, Fred Bolton, Melvin Olson e:\ww\water\news9901.doc Printed 7 July, 1999 WE ARE INCLUDING WITH THIS NEWSLETTER A COMPILATION OF RATES AND OTHER INFORMATION. This is an attempt to bring together the most important guidelines by which McNulty Water tries to operate. Without such guidelines, we are in danger of creating new exceptions or changes whenever a homeowner or developer presents yet another variation of the needs for water. We hope you find these guidelines satisfactory to continue to direct McNulty Water Assn. in the future. Noel Thompson - 397-2679 <\pre><\html>