Board weighs how to pay for setback levee

The Yuba County Board of Supervisors will have some big decisions to make Tuesday when it is presented with options to pay for the Feather River setback levee, the fourth in a series of levee repairs.

In October, the state announced Yuba County would receive $138 million from Proposition 1E funds for levee improvements if the county could provide the remaining local match. The project is estimated to cost $191.8 million.

County officials anticipate $30 million to come from developer impact fees in the south county; the remaining $23 million will be borrowed by the county.

"Ultimately, the county is responsible for this money," County Administrator Robert Bendorf said. "We want to eliminate the possibility of using funds from the general fund."

Construction of the levee is expected to begin later this month. The levee will be in the Plumas Lake and Arboga area, along the Feather River.

The choice before the supervisors is to determine how much to borrow, based on the uncertainty of the housing market.

Originally, staff presented a repayment plan that would require the county to borrow $31 million, including three years of interest. With this plan, the county would repay the loan at $2.1 million each year for the next 40 years.

The second option would give the county more time to build up impact fees by borrowing $33 million, including six years of interest. Repayment for this plan would not begin until 2014 at $1.3 million each year and growing to $5.3 million for the next 40 years.

Randy Margo, assistant county administrator, said the second scenario is intended to limit or completely eliminate the county's out-of-pocket expenses by deferring payment for an additional three years.

"We are taking into consideration the current housing slump," he said. "With more time, we hope we are able to collect more impact fees."

Bendorf said with the extra time, fees collected from the developers will also grow if the housing market turns around and more homes are built in the county.

He said staff realizes the importance of the six miles of setback levee along the Feather.

Regardless of the choice, the general fund is always at risk, the administrators said.

"We're viewing this as investment in public safety," Margo said.

Supervisor Mary Jane Griego said this project needs to continue because the risk of flooding far outweighs the price of the project.

"After the '86 flood, businesses left," she said. "For 20 years, the south county has been severely impacted."

Griego also said that when the Federal Emergency Management Agency issues new flood maps for the area, Yuba County will benefit greatly.

This project, Griego said, "isn't for the faint of heart or weak-kneed politicians."

Griego's constituents are largely affected by this setback levee.

Supervisor Hal Stocker said public safety is a priority the board should remember.

"We owe it to these people," Stocker said about residents subject to the 1986 and 1997 floods. "They deserve anything we can do as a county to protect them."

Know and go

• What: Yuba County Board of Supervisors meeting

• When: Tuesday, 6 p.m.

• Where: Yuba County Government Center, 915 Eighth Street, Marysville

• At issue: Supervisors to decide on amount to borrow for Feather River setback levee

• More information: 749-7510

Contact Appeal-Democrat reporter Andrea Koskey at 749-4709 or at akoskey@appealdemocrat.com