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Published on Wednesday, Oct 29, 2008
Details of the proposal to lease the city's sewer system to fund higher education for Akron's children.
Q: What is Issue 8?
A: This is an Akron city charter amendment, proposed by Mayor Don Plusquellic and the City Council, that would allow the city to proceed with a lease of the sanitary sewer system and to establish a scholarship program.
Q: What is Issue 9?
A: This is an issue placed on the ballot by opponents of the plan. If approved, it would prevent the city from selling or leasing major assets without voter approval.
Q: If voters approve Issue 8, who would want to take responsibility for the sewer system?
A: Investors, usually large pension funds, would invest in the system in return for a stable revenue stream.
Q: How much would be raised?
A: The city estimates that it could generate between $200 million and $300 million.
Q: The city has outstanding debts on the sewer system. If it leases the system, it will no longer have a source of income to pay off those debts. How will it resolve this problem?
A: The first $90 million in revenues generated by the lease will be used to pay off debt. Of that debt, the city might be able to transfer about $30 million in loans from the Ohio Water Development Authority to a new operator, who would pay it off through general annual revenue, potentially freeing that money for scholarships.
Q: Who will manage the scholarship money?
A: The money will be deposited into a fund managed by the non-profit Akron Community Foundation.
Q: Can the money ever be used for something other than scholarships?
A: Yes, but not without voter approval. The charter language allows the mayor, in the event that other money becomes available to cover the cost of higher education, to propose alternative uses to the council and then to voters.
Q: Will the group leasing the system be allowed to raise my sewer rates?
A: Yes. However, increases will be capped at a 3.9 percent average rate over 10 years for normal operations and capital expenses. However, the city is in negotiations with the U.S. Environmental Protection Agency about a timetable to implement Akron's $370 million plan to address overflow from combined sanitary/storm sewers. Any federal or state EPA mandated expenditures for major projects must be approved separately by the mayor and council and might result in higher bills for sewer customers, regardless of who operates the sewer system.
Q: Who will be responsible for compliance with environmental laws?
A: The group leasing the system.
Q: If the lease doesn't work out, then what?
A: The city will have the option to cancel the lease and take the system back.
Q: Will anyone lose their jobs?
A: In response to concerns that the 100 sewer department employees could lose their jobs, Plusquellic and the council agreed to guarantee displaced workers a job at comparable pay in other city departments.
Q: Who will be eligible for the scholarships?
A: Akron residents who graduate from Akron public schools, parochial schools (there will be an annual cap on the number of parochial school scholarships available), Akron-sponsored charter schools, Akron residents enrolled in other school districts, Akron residents who are home-schooled and meet state graduation and college admission requirements and recipients of general equivalency diplomas before their 21st birthday. The amount of the scholarship will be prorated for the amount of time in Akron public schools.
Q: Are there income requirements to qualify?
A: There are no income or merit requirements.
Q: Who does not qualify?
A: Students in charter schools not sponsored by Akron Public Schools, nonresidents who open enroll in Akron Public Schools or attend Akron parochial schools. Children of about 6,800 retail sewer customers who reside in Akron's suburbs, but pay Akron sewer bills. Children of workers who pay Akron City income tax, but do not reside in Akron.
Q: Where can the scholarship money be used
A: Recipients must be admitted to the University of Akron or one of seven approved trade schools in Akron.
Q: What must I do to apply?
A: Recipients must first apply for federal and state financial aid and use all grants toward tuition.
Q: What will the scholarship money cover?
A: The Akron scholarship will cover any tuition costs and mandatory fees not covered by other financial aid. College savings plans such as 529s would not be considered financial aid or affect the scholarship amount.
Q: When does the money have to be used?
A: Recipients may use it until the age of 25, and military members would have even longer.
Q: I've heard that in some cases, the money must be returned. Is this true?
A: Recipients who live or work in the city of Akron and pay Akron city income tax for 30 years will have no repayment obligations. Recipients who leave the city may either continue filing city income tax returns for the remainder of the 30 years, or repay the city for the loan.
Details of the proposal to lease the city's sewer system to fund higher education for Akron's children.
Get the full article here.
Comments
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Tallmadge, OH
Posted 06:19 AM, 10/29/2008
Bad for Akron. vote NO on 8 and YES on 9. Tell Mayor Donny Boy where he can go with his stupid idea.
Posted 06:20 AM, 10/29/2008
A: Yes. However, increases will be capped at a 3.9 percent average rate over 10 years for normal operations and capital expenses. However, the city is in negotiations with the U.S. Environmental Protection Agency about a timetable to implement Akron's $370 million plan to address overflow from combined sanitary/storm sewers. Any federal or state EPA mandated expenditures for major projects must be approved separately by the mayor and council and might result in higher bills for sewer customers, regardless of who operates the sewer system.
So are they saying no matter who owns the sewers the EPA mandated 370 million could still raise the sewer rates? So the debt for the system is not 90 million as William Pierce from Case Western Univ spoke in the other article. It is still actually 370 million that has to be paid in fifteen years? So the sewer rates can go up no matter what happens here? Maybe Akron needs to better qualify the situation for the voters because I am hearing two issues running side by side and there is still a chance the sewer rates will go up no matter how they vote.
Posted 04:09 PM, 10/29/2008
If you think you are struggling now wait until this passes and Donnyboy and his partners in CRIME will be more overbearing than ever. when you are looking for help to pay for your skyrocketing water bills and they will skyrocket the mayor will be counting his cash and looking for other ways to get what little you will have left. how dare we think we deserve a better life Donny and his buddies will ensure that does not happen!. NO on 8 YES on 9!!
