Tag Archive for: #vancecountywater

Vance County Water is Working

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The Water District Board of Vance County. It’s what many call “county-wide water.”

Actually, there is Phase 1, Phase 2 and Kittrell with a total of 1,794 customers committed to the system and 1,387 as functioning, metered customers.

The latest available data, which was used for the Vance County Commissioners meeting on August 2nd, indicates in round figures the Vance County Water District will cash flow about $1 million in accounts receivable in 2021. It was about a half million in the first six months.

Cash flow is good and profitability is about here.

County Manager Jordan McMillen told WIZS News by email, “The county water system is nearing its breakeven point ahead of schedule. A few years ago we put together a projection that anticipated breaking even by July of 2024. We are ahead of that schedule and almost had the system break even in FY19-20 (July 1, 2019 – June 30, 2020.) – within $20,000 of breaking even. We just finished up FY 20-21 and although we had more unexpected costs (line breaks, tap installs, etc.) were hopeful the system can get to the breakeven point in the next year or more.

“As we are bringing the original system and original debt to break-even we are getting ready for construction of the next phase which will start the process over of trying to break-even again with the new debt.”

McMillen has been working this project from the start, not just the project’s start but his start with Vance County.

Considering McMillen’s obvious work ethic and positive reviews by other county employees in a recent Vance County workplace survey from the Local Government Workplaces Initiative and UNC School of Government, many hearing McMillen’s name beside the project will in fact project some of its successes on to him.

McMillen wrote in a separate, follow up email, “Right before I came on board with the county in 2008 I attended a county informational meeting before anything began with financing the project or construction. I still keep the notecard I made from that meeting in my briefcase reminding me of the pros and cons people were saying about the system at that time.

“The success of the water system and bringing it to self-sufficiency has been one of my largest personal goals with the county. While it is challenging to take on a new phase and see us start over, it is good to see the impact that the water system has for those citizens needing it.”

Vance County Logo

Vance Co. Water Topic of Tuesday’s Called Commissioners’ Meeting

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-Information courtesy Jordan D. McMillen, County Manager, Vance County

NOTICE OF SPECIAL CALLED MEETING

This memorandum will serve as notice that Chairman Thomas S. Hester, Jr. has called a special meeting for Tuesday, August 21, 2018, at 5 p.m. in the Commissioners’ Conference Room, Vance County Administration Building, 122 Young Street, Henderson, NC.

The purpose of the special meeting is to:

1. Convene the Vance County Water District Board and hear a report from the Water Planning Committee concerning the following:

  • Awarding a contract for construction of Phase 3 of the County Water System.
  • Phase 1B update and authorization of next steps.
  • Establishing base rates for 3-inch, 4-inch and 6-inch water meters.

2. Convene the Board of Commissioners to enter closed session to discuss a legal matter.

3. Other items as necessary.

Vance County, NC

Water Planning Committee Seeks Self-Sufficiency in Customer-Friendly Incentives

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At Monday night’s Vance County Board of Commissioners meeting, the Water Planning Committee discussed its plan for self-sufficiency for the county water system by presenting two possible incentives focused on the goal of attracting a new customer base.

The first incentive called for “forgiving” the outstanding balance of availability customers once they have been connected to the water system for a period of time. Availability customers are the portion of active customers who signed up for the water system, but never made an actual connection.

According to County Manager Jordan McMillen, there are currently a total of 434 availability customers who are responsible for a $30 monthly fee as a result of their commitment to the system and having water available to their property.

The second incentive presented to the Board would allow existing/active customers to receive a credit on their bill for referring a friend or neighbor who becomes an active water customer. This referral incentive would only apply to existing/active customers.

Both incentives aim at increasing the water system’s customer base. The county water system currently serves 1,282 active customers in the Sandy Creek, Dabney and Williamsboro townships, with 848 metered customers hooked into the system.

According to McMillen, the total number of current metered customers comprises slightly more than half of the overall number needed to reach self-sufficiency. “To achieve self-sufficiency, we need approximately 1,500 to 1,600 active metered customers. Our multi-year financial plan for the system includes converting more availability customers to active customers as well as adding new customers to the system to alleviate a situation where the county is providing approximately $400,000 a year from the general fund to offset and subsidize the water system,” stated McMillen.

McMillen noted that it is typical for a new water system to be subsidized for a period of time while the customer base builds. He believes incentives and current customer satisfaction will go a long way into building the necessary customer base. “The incentives discussed are being proposed as a way to add customers. Once they join the system, they are happy with what they are receiving, they like the fact that water is available when the power is out, and they have peace of mind not having to worry with wells drying up, well pumps or related issues,” McMillen remarked.

After hearing the incentive proposals, the Board instructed staff to develop the necessary language and specifics to move forward with the customer referral incentive for consideration at the water committee’s February meeting. The committee then plans to bring the more developed customer referral program language back to the board of commissioners for consideration at their March meeting. The Board was not in favor of the outstanding balance forgiveness proposal at this time.

In addition to the discussion of the two incentives, the committee also heard from three availability customers and one active customer who favored eliminating the $30 fee and replacing it with an annual tax or another type of assessment.

McMillen acknowledged that the challenge with eliminating the availability fee is making up the difference elsewhere. “The challenge with eliminating any fee is that it widens the gap in funding that is necessary to reach self-sufficiency and essentially requires a different revenue option or fee to fill its place,” explained McMillen.

While the committee works diligently to reach its goal, McMillen reported that the system is keeping its current customer base happy. “The water committee is continually looking for ways to decrease expenditures, add customers, and increase revenues to bring the system to self-sufficiency.  As the committee continues to do this, we are cognizant that the water system is serving citizens and satisfying a need for quality drinking water and fire protection throughout the county,” McMillen stated.