Letter: Who's on the hook in Y.C. for $15M?

A city surface water conversion project costing more than $17 million has just expanded into almost a $32 million project.

On April 29, 2008, Yuba City’s utilities department estimated this project to cost about $11 million for 4,000 homes.

At that time the city added approximately $5.6 million for oversizing the project for future city growth.

Today, project costs – including about $4.8 million in federal grants – is now almost $32 million. Changes, additions, increased construction costs, plus the addition of plant capacity charges, resulted in costs more than $15 million above the original cost estimate.

On Oct. 20, 2009, Yuba City City Council authorized the utilities director to sign for more than $26 million of state revolving fund loans.

Approximately $11 million of these loans are recoverable with a surcharge paid by the 4,000 home owners.

It is questionable as to who pays the additional $15 million.

According to the city, if there is not sufficient revenues to satisfy the loan debt service the city shall raise revenues through increased water rates, user charges, assessments or any other legal means.

At the meeting, a few citizens questioned encumbering the city for more than $15 million without determining responsibility for repayment.

However, city council did not address these questions prior to their approval.

It is quite conceivable that city residents will be charged increasing water costs at a later date.

Is this city growth at the expense of its citizens and not the developers?

Donald Kessel

Yuba City