General Information

Introduction

For the past ten years the Sanitary Districts in the Town of Algoma and the Town of Omro have been working together through intergovernmental agreements to provide efficient water and sewer services to their residents. Recently the districts have initiated discussions on ways to reduce their rates by becoming one entity through consolidation. There are several advantageous reasons to consolidate:

1. Save over $60,000 annually by eliminating duplicated expenses including insurance,

attorney fees, building rent, engineering, staffing, and audit expenses.

2. Maximize economy of scale savings.

3. Improve financial strength in terms of cash on hand versus annual expenses.

4. Expand the current customer base and increase future growth potential.

Consolidation by statute requires a referendum of the voting public to approve, which will be included on the April 2012 ballot. In our efforts to inform the public and address your questions about this consolidation, the District will be holding public informational meetings over the next several months:

Wednesday December 7, 2011, at the Algoma Town Hall (15 N Oakwood Rd, Oshkosh) at 6:30 p.m.
Tuesday December 13, 2011, at the Omro Town Hall (4205 Rivermoor Rd, Omro) at 6:30 p.m.
Wednesday February 1, 2012, at the Algona Town Hall at 6:30 p.m.
Monday February 13, 2012, at the Omro Town Hall at 6:30 p.m.
Tuesday March 20, 2012, at the Algoma Sanitary District (3477 Miller Drive, Oshkosh) at 7:30 p.m.

Utility Director, Kevin Mraz, embraces this opportunity, stating “With our existing staff, experience, and infrastructure, this transition will be seamless as our residents will continue to receive the same great customer service that we currently provide.” He hopes to have a good turnout of voters to affirm this consolidation as a benefit to our current and future residents and to begin capitalizing on the potential savings.

How Does This Consolidation Affect Me?

	Algoma Sanitary District	Omro Sanitary District
Tax Levy	Proposed 2013 tax levy will be reduced by 6% from $29 per $100,000 of assessed value to $27.	Proposed 2013 tax levy rate will be reduced from $121 per $100,000 of assessed value to $27.
Water Rates	Current average quarterly bill is $120 for 17,000 gallons of water. Consolidation would prevent significant increases above inflationary trends of 3% annually.	Current average quarterly bill of $256 for 17,000 gallons of water will be reduced by 50% over a three year phase-in period to match Algoma water rates.
Fire Protection	The Town of Algoma / Omro are required by statue to provide fire protection to its residents
Fire Protection	Consolidation will not affect the current fire protection charge. Cost will stay in the general tax levied by the Town of Algoma.	Each developed District parcel in the Omro Sanitary District will be charged $100 on their annual property tax bill. This charge is already included in your annual property tax bill.
Sewer Rates	Retain the current low rates of approximately $300 per year based upon existing contractual rates.	Current rate of $792 will be reduced by $101 to $691 per year based upon existing contractual rates.

The table above represents the approximate preliminary rate schedule of the consolidated District.

The Proposed Consolidated Sanitary District would be named and located:

ASD Logo.png

Algoma Sanitary District

3477 Miller Dr

Oshkosh, WI 54904

Phone: 920-426-0335

Fax: 920-426-1181

www.algomasd.org

Proposed 2013 Sewer User Fee

Location	Base O&M		Treatment Cost*		Total Annual Charge
Town of Algoma	222.00	+	78.00	=	$300**
Town of Omro	222.00	+	469.00	=	$691**

*The treatment charge is contractual based on agreements with each waste water treatment plant.

Town of Algoma waste water is treated by the City of Oshkosh.

Town of Omro waste water is treated by the City of Omro.

** This amount will be billed on your 2012 tax bill.

Note: Algoma sewer user fee on 2011 tax bill is $292.00. Omro sewer user fee for 2011 is $792.00.

Map of Algoma Sanitary District Map of Omro Sanitary District

Algoma Sanitary District parcels are in yellow Omro Sanitary District parcels are in pink

Water Rates

Year*	Rate Change**	Algoma Average	Rate Change	Omro Average
2011	3%	$123.87		$255.70
2012	3%	$127.64	-16%	$213.02
2013	3%	$131.46	-20%	$170.34
2014	3%	$135.48	-20%	$135.48

*Rates become effective as of July 1 of stated year and based on usage of 17,000 gallons per quarter.

**Reflects anticipated increases with inflationary benchmark set annually by the Public Service Commission.

Public Fire Protection

2012 Total Public Fire Protection Fee

Omro	Algoma
$35,147	$147,049
The Town of Omro Sanitary District includes the amount owed for Public Fire Protection in the District tax levy. Here are the future options the District would have to collect this fee for Town of Omro Sanitary residents:	Currently, the Town of Algoma collects 100% of the total Public Fire Protection charge of $147,049 due from their residents on the general tax levy.

Former Omro Sanitary District Options

1) Resident in former Omro Sanitary District boundary pay fee of $100/developed parcel.

2) Water customer pays fee of $170.76/quarter on their water bill.

Town of Omro Board Option

1) Collect fee of $35,147 on General Tax Levy at rate of $18.95 per $100K of equalized value.

Tax Levy

Based on legal counsel review, the consolidated Algoma Sanitary District is required to have an equal Ad Valorem mil rate for its tax levy of the entire District. The Commissioners have decided to reflect the savings of consolidation by reducing the amount charged in the tax levy of the District. This method will allow all residents in both districts to receive a financial benefit from consolidation.

	Former Algoma Sanitary District	Former Omro Sanitary District
Tax Levy	Proposed 2013 tax levy will be reduced by 6% from $29 per $100,000 of assessed value to $27.	Proposed 2013 tax levy rate will be reduced from $121 per $100,000 of assessed value to $27.

Timeline

June 9, 2011 – The Omro Sanitary District and Algoma Sanitary District Commissioners unanimously approved the final terms of consolidation.
Hold five public informational meetings to address questions about consolidation:
- Wednesday December 7, 2011, at the Algoma Town Hall (15 N Oakwood Rd, Oshkosh) at 6:30 p.m.

Tuesday December 13, 2011, at the Omro Town Hall (4205 Rivermoor Rd, Omro) at 6:30 p.m.
Wednesday February 1, 2012, at the Algona Town Hall at 6:30 p.m.
Monday February 13, 2012, at the Omro Town Hall at 6:30 p.m.
Tuesday March 20, 2012, at the Algoma Sanitary District (3477 Miller Drive, Oshkosh) at 7:30 p.m.

April 2012 – Schedule public referendum to approve consolidation.
May 2012 – Consolidation begins with combination of ordinances and records of the District.
July 2012 – Former Omro Sanitary District water rate phase-in schedule begins.
July 2012 – New sewer rates implemented for former Omro Sanitary District residents.
December 2012 – All consolidated District sewer users will have their 2013 annual Sewer User Fee billed on their property tax bill.

Comparisons

All the amounts and rate structures are based on current 2010 actual statement of assessment amounts from the Department of Revenue and use estimated projection variables which, depending on market fluctuations, will adjust accordingly.