Contact: Hon. Joyce R. Blevins, Chairman, McDuffie County, P.O. Box 28, Thomson, GA 30824, 706/595-2100, 706/595-4710, (fax)
Mr. Dewayne Patrick, City Administrator, City of Thomson, City Hall, Thomson, GA 30824, 706/595-1781, 706/595-2161 (fax)
Description of Effort
In 1990, the City of Thomson and McDuffie County signed a fifty-year contract forming a multi-jurisdictional water supply and wastewater system that is jointly owned and operated. The contract also formed a Water Commission (Commission) that guides the countywide water supply and wastewater system. By combining resources, the city and county have acquired additional sources of potable water and expanded water services throughout the county without incurring long-term debt.
The statewide drought of the early 1980’s caused water shortages in the city and the county as many private wells began to go dry. By 1983 pressure from citizens had mounted for access to the city’s water system or for the county to build a water system. The city’s water supply, however, was already stressed. Usry’s Pond was at half capacity due to lack of rainfall and evaporation causing the city to ration the 2 million-gallon per day water supply. The two wells serving the residents of the City of Dearing were found to be inadequate.
Access to adequate water supplies became critical countywide. However, neither the city nor the county had the funds to correct the shortages. To address this pressing need, the Mayor of the City of Thomson and the Chairman of McDuffie County initiated the formation of the Commission, development of the joint water service strategy, and commitment to combine resources.
The present countywide water system has developed over a ten-year period. The first project under the Commission involved the purchase of fifty acres at Clark’s Hill Lake for construction of a water treatment facility. A contract was also negotiated with the U.S. Army Corps of Engineers for 2 million gallons of water from the Corps owned lake to meet immediate needs and an additional 2 million gallons to support future growth.
Soon after, the Town of Dearing built a new elementary school and needed to upgrade its water supply to meet fire code requirements. The school system could not get enough water pressure to meet the sprinkler system demands and satisfy the insurance requirements through groundwater wells. The Town of Dearing joined the Commission and the extension of water services brought about 600 people and the elementary school onto the multi-jurisdictional system.
Subsequent projects under taken by the Commission have included construction of a wastewater treatment facility and land application system and extension of wastewater lines to serve industry.
Managerial Considerations
The Commission provides consistent and impartial guidance for the multi-jurisdictional water and wastewater system. A commission rather than an authority was established so that the local governments could maintain decision-making control. The Commission is an advisory body to the Thomson City Council and the McDuffie County Commission. It reviews proposed projects and makes recommendations to the two governments who then vote in regular session whether to proceed.
The city and county each appoint three members to the Commission, appointees must include the Mayor, one Councilman and a private citizen from the city and the Chairman, a Commissioner and a private citizen from the county. The Mayor of Dearing also serves on the Commission. The jurisdictions are jointly accountable for the results of the countywide water system.
The City of Thomson is responsible for the day-to-day management, operation, and maintenance of the water system. The city was managing the existing system when the Commission was established. The information systems needed to monitor operations, personnel, and other areas of performance were already in place. The city was able to assume the additional responsibilities of the expanding countywide system without hiring additional employees.
Technical Considerations
The multi-jurisdictional water service system includes two water supply treatment facilities, a wastewater treatment facility, a land application system, and distribution systems of water and sewer lines. The water distribution system contains approximately 15 miles of 20-inch transmission line and 10 miles of 12-inch line. The Clark’s Hill Lake water treatment facility has the capacity to produce 2 million gallons per day of drinking water. A future expansion will allow the facility to treat the additional 2 million gallons per day. Current demand is approximately 2 million gallons per day, which is transported to the City of Thomson through 13 miles of 20-inch water main and then distributed to the Town of Dearing.
Over the course of planning and constructing the countywide system, assistance has been received from several sources. In 1983/1984 The University of Georgia Carl Vinson Institute of Government conducted a duplication of services study to determined which provider, the city or county, could most efficiently provide which service and advised where services could be combined in a cost effective way to better serve citizens. Current need and the Future Land Use Plan, supported by GIS technology, guided the expansion of water and sewer lines in the county, which resulted in a comprehensive water management plan. Engineering firms designed and built the multi-jurisdictional water services system with regulatory approval provided by the Georgia Environmental Protection Division (EPD). In particular, Chasman & Associates played a major role in the success of this effort. The firm:
developed the initial water supply strategy;
prepared the water system master plan;
developed the capital plan that was the basis of the Special Purpose Local Option Sales Tax (SPLOST); and
managed the construction of the initial SPLOST projects.
Financial Considerations
The total cost of development of the multi-jurisdictional water and sewer system was initially estimated at $17 million. However, the system (existing and new) represents a total investment of approximately $42 million; the Clark’s Hill Lake transportation infrastructure alone cost nearly $6.5 million.
From the beginning the governments devised a strategy to spend dollars wisely, for instance extending water lines to areas where the most citizens could be served for the least investment. The governments made prudent long-term decisions such as choosing to pay for the 4 million gallon capacity at Clark’s Hill Lake up-front at a price of $334,714 rather than over 30 years at an amortized cost of $843,000. The governments also practiced frugality, waiting until sufficient funds were available before beginning each project.
Early on the city and county realized that existing sales tax would not support repayment of municipal bonds precluding the bond market as a funding source. The governments devised a joint solution that maximized each party’s resources and capabilities. The city’s treatment facility and water lines, valued at approximately $11 million, were placed into the multi-jurisdictional water services system while the county sponsored a voter-approved one-cent SPLOST to fund capital projects such as the water treatment facility at Clark’s Hill Lake.
To date, two five-year SPLOST referendums have generated approximately $10 million over ten years. The second SPLOST is expected to generate at least another $4 million before it expires. A third SPLOST referendum will be attempted to complete the remaining major planned project, extension of sewage capacity to Interstate Highway 20, which is expected to cost about $500,000.
Innovative financing, another financial strategy of the governments, was sought for each project. The Commission and the three individual governments separately have received grants totaling $12 million including:
$1.5 million from the Economic Development Administration;
$4,865,000 from ten Community Development Block Grants to the three governments;
$1,666,000 from the United States Department of Agriculture to the Town of Dearing;
$1,778,000 from the United States Department of Agriculture to McDuffie County;
$906,000 in an Enterprise Community grant; and
$400,000 from EPD for construction of the wastewater treatment facility and the land application system.
The grants supplemented the SPLOST to more than double the funds available to expand the countywide system.
The Commission has borrowed approximately $4 million to accomplish some projects including:
a $941,000 loan to the Town of Dearing made by the United States Department of Agriculture;
a $1,618,000 loan to McDuffie County made by the United States Department of Agriculture;
a $159,000 loan from the Georgia Environmental Facilities Authority; and
$1 million from the McDuffie County Board of Education.
When the Town of Dearing needed immediate additional water supplies for its new elementary school, there were not enough accumulated SPLOST funds to pay for extension of water service. The McDuffie County Board of Education advanced the Commission $1 million, which the Commission was able to repay with SPLOST funds by the time the project was finished. In total, the SPLOST funds have allowed the Commission to pay back all but about $500,000 of the $4 million it borrowed.
The governments also have used the capital improvement budget to guide some of the projects such as upgrading the old water treatment facility and timing the alternate use of the new and old treatment facilities. As well, a cost of service analysis was conducted on the USDA grants and loans.
Part of the initial contractual agreement between the City of Thomson and McDuffie County included provisions to equalize the rate structure differential. Water rates have twice increased to residents of the city while the county rates remained the same. One more increase will take place to bring the rate structures level.
Outcomes
After 10 years of infrastructure construction and service expansion, the multi-jurisdictional water services system is now countywide. When the joint water system began approximately 1 percent of the county citizens had access to governmentally owned water supplies. At the completion of the current projects, approximately 75 percent of the county residents will have access to adequate supplies of safe drinking water and sewer services.
The countywide access to water supplies has drawn industry to the city and county. Advance Auto Parts built a $400,000 distribution center that will employ 400 people by the year 2000. In addition, water supply and sewage transmission lines have been extended to the Interstate Highway 20 corridor assuring more growth, more jobs, and a stronger tax base.
New state regulations require the old water treatment plant to be upgraded. When that is completed, the city and county expect to be able to meet water supply needs for the next 20 years. In addition, the multi-jurisdictional water supply and wastewater system will be debt-free and self-sufficient.
Funding decisions made over the past decade, have allowed the city and county to expand the water services system with very little indebtedness. The SPLOST funds were crucial to the city and county’s ability to receive grants.
The City of Thomson and McDuffie County found that the success of the Commission is based on the willingness of the governmental entities to work together and to put constituents first. Citizens do not care who delivers the service as long as the service is delivered in a cost effective, efficient manner. The success of the multi-jurisdictional water services system and the Commission has been based on the personal commitment of the elected officials to remain dedicated and determined to serve the collective needs of the constituents. |
