City of Iron Mountain Water Rate Issues

City of Iron Mountain Water Issues

Compared Rates Iron Mountain Versus Kingsford

Compared Rates Iron Mountain New versus Old

History of the Water Bond

This is the sordid history of the water bond issue that led eventually, to a $4,800,000 water bond. We thank those people who were involved in the early discussions this project and have contributed to the information you will read here. Many are retired city employees who had years of experience and were very knowledgeable about the water system. Their valuable advice was ignored and brushed off.

Two separate issues started the original discussions. One was a bacteria problem. The second one was historically low water pressure in the upper areas of the East Side and to a much lesser extent in the newer development, Pine View Estates, off the upper Pine Mountain Road (Kramer Drive).

The bacteria issue continues. You recently received yet another notice from the city indicating that coliform bacteria was again in the water supply. This is a problem that the project completely failed to solve.

The water pressure issue. For years, residents who chose to build east of Park Avenue had low water pressure. The city water tank was located at B Street and Park. Their homes were not high enough above the water tank, thus the pressure was low.

Therefore, building a water tank above the homes on the upper East Side made some sense. The cost of that project was something over $1,000,000.

The second water tank (upper Pine Mountain Rd., i.e., Kramer Drive, near the chair lifts) could have easily been avoided by increasing the pressure in the existing water lines. That entire issue started when a fire hydrant up there was somehow left open and running and affected the pressure in that area. It was not an over-whelming problem. It did become an expensive one.

The total cost of the project should have been closer to $3,000,000 than $4,800,000.

The City Council that served until December 31, 2004 was involved in many discussions concerning this project. It fell to the City Council that began serving on January 1, 2004 to make a go or no-go decision, or to modify the project.

In March or April of 2004, a joint meeting of the new City Council and the TIFA Board was held to discuss a wide variety of subjects of common interest, including the water bond that was scheduled to be issued. That meeting was covered by The Daily News.

TIFA had explored the legality of contributing to the project because the case could be made that the TIFA district would be positively impacted by it. Preliminary discussions with legal counsel suggested that between 25% to 35% of the project could be financed with TIFA funds. Further, since TIFA would be expiring on June 30, 2011, all of TIFA's contribution would be over a relatively short seven-year period. This would have had a dramatic effect in preventing water rates from rising the 47% to 57% that subsequently occurred.

At least three of the newly elected council members, Ken Tousignant, Jeff Van Laanen and Doug Rigoni strongly objected. In effect, they said "Stick it to the taxpayers and water users." Why? The TIFA Board explained carefully, complete with spreadsheets, that putting $200,000 a year against the bonds, or $1,400,000 over seven years would be no burden. All of that money could have gone against the principal.

Their answer: "We have ideas on how to spent TIFA's money". The TIFA Board also had an idea - namely to keep the burden on the taxpayers and water users as low as possible.

These people had been on the City Council less than four months, and their attitude toward residents and taxpayers was already obvious. It is an attitude that, with the City Manager in full agreement, has continued to this day. Let's nail the taxpayers for all we can so we can fund our pet projects.

See the informational sheet entitled Compared Rates Iron Mountain New versus Old under City Water Rates link. It shows you your actual out of pocket costs.

They can try to spin their way out of the large extra burden they have placed on you, but the facts speak for themselves and far louder. And you SEE their lack of concern every two months when you get your water bills. They are not out to do you any favors. Remember them.