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Referendum set on water utility(Milwaukee Journal Sentinel, The (KRT) Via Acquire Media NewsEdge) Sep. 7--MEQUON -- Here are questions and answers on Tuesday's referendum, in which Mequon voters will be asked to approve the $14.8 million purchase of a water utility from We Energies. --Whom does the water utility serve? More than 2,800 residences in Mequon, plus 83 in Thiensville and 455 in Bayside, as well as 189 commercial customers in Mequon. --Why does the city want to buy it? To reduce rates. The city believes it can operate the utility at a lower cost than We Energies because it does not pay income taxes and can borrow money at lower rates to make improvements. The city notes that We Energies has raised rates 35% in the past two years. The city estimates the annual bill for the average residential customer would drop to $600 from $825. --How would the city pay for the utility? No tax dollars would be used. The city would borrow money that would be repaid by users of the utility over 20 years. Besides the $14.8 million borrowed to buy the utility, the city would borrow $2.2 million for start-up costs, financing costs and other expenses. The total cost of the interest is estimated to be $6.9 million. --Will homes or buildings on wells be required to connect? No. --Will homes or buildings on wells be allowed to connect? Homes and buildings within the utility's service area that are now on wells can choose to connect to the utility. No estimates have been done on connection fees. --When would the city begin operating the utility? The goal is Jan. 1. On the Web: The city provides information about the referendum on its Web site, mequon.govoffice.com. To see more of the Milwaukee Journal Sentinel, or to subscribe to the newspaper, go to http://www.jsonline.com. Copyright (c) 2008, Milwaukee Journal Sentinel Distributed by McClatchy-Tribune Information Services. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. |