Gozzer Ranch and Arrow Point Infrastructure Improvements will further optimize drinking water and wastewater services in these areas and are required for the District to continue to operate per current Idaho Rules for Public Drinking Water Systems and Idaho Wastewater Rules. These improvements are financed through a revenue bond approved by the District electorate on November 3, 2020.
Provided below are answers to frequently asked questions regarding the improvement projects, debt service assessments, and timelines for project completion.
What are the projects? How are debt service assessments billed?
As per Board-approved Resolution 20-18, Section 7, the revenue bond approved by the District electorate on November 3, 2020 “will be payable solely out of rates and charges, and all other income, earnings, and revenue from Gozzer Ranch and Arrow Point service areas.”
The $5.8 million revenue bond funds two separate improvement projects directly benefiting the Gozzer Ranch and Arrow Point service areas. The monthly debt service assessment to customers in these service areas is calculated based on the improvement benefit received as described below:
Gozzer Ranch Drinking Water System Improvements
The drinking water infrastructure improvement project is driven by updated 2015 International Fire Code fire flow capacity requirements within the Gozzer service area. As fire flow is provided to customers through the potable water system supplied by Lake Coeur d’Alene, potable surface water treatment components will be upgraded to supply additional capacity. The existing slow sand filtration treatment system will be upsized to a pre-adsorption clarifier direct filtration treatment system. The pumping capacity of treated water to the service area will be upsized to meet increased fire flow requirements. Current engineering estimates for the completion of these required improvements is $6.6 million.
On April 6, 2023 the District Board of Directors held a rate hearing to review options for funding the project budget deficit and receive input from customers. Following closure of the hearing, the Board of Directors approved a temporary15-month access rate increase to Gozzer Ranch active water customers from $59.04 per month per equivalent residential unit to $207.83. The increase will be reflected on Gozzer Ranch active water customer bills due in May 2023.
The annual debt service for repayment of this portion of the revenue bond is divided among all actively served connections east of Highway 97, which includes customers directly benefiting from these improvements. The Gozzer water treatment project is scheduled for completion in late spring 2024.
Arrow Point Wastewater System Improvements
The inspection of the Arrow Point collection tanks by a licensed professional structural engineer provided valuable data to the District for identifying prescribed corrective actions to ensure service longevity of the collection tanks at significant cost savings. This project is scheduled to be completed by February 2023. Repayment of this portion of the revenue bond is divided equally among all actively served connections west of Highway 97, which includes customers directly benefiting from these improvements.
Information on the debt service assessment and annual re-evaluation.
The pro-rata monthly debt service charge is calculated annually each October to distribute the debt service equitably among active service connections. A data discrepancy in the number of active Gozzer Ranch water connections supporting the pro-rata assessment was found in December 2022, requiring the Gozzer Ranch active water service connection debt service assessment to be corrected through the public rate hearing process on January 5th. The District Board of Director’s ratified Resolution 23-04 (incorporating the assessment correction) following the public hearing on January 5th.
Gozzer Ranch actively served water customers on the east side of Highway 97 will see the corrected debt service assessment reflected on their January 2023 billing statement.
District rates are available on our website: nkwsd.com
Who do I call if I have questions or comments?
District staff may be reached directly at 208-687-6593.
Comments may also be emailed to the District at [email protected]