Customer rates are currently the only source of revenue to operate the City of Loyalton's water system. The entire Water Infrastructure project is currently estimated at $44,000,000.
Multiple grants through multiple agencies both federal and state have been and will be applied for. Many of these grants have a “matching funds" component in order to qualify for the grant. It is imperative that the City have reserve funds available for the Water Infrastructure Project and for grants that become available to meet the matching fund requirement in order to qualify for these grants.
A Water Infrastructure Fee must be collected on all properties with access to the water system to cover the matching funds.
What started out as a proposed $215 per year was increased to a proposed $300 for 40 years with a 5% inflation rate at the April 18th City Council meeting.
For comparison on water costs, Calpine residents pay $923.88 annually and have no debt to pay.
Sierra Brooks pays $426.30 annually for its bond, $240.00 annually for services. Both are on the property tax bills plus a monthly fee, according to Sierra County Auditor/Tax Collector Van Maddox.