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Seasonals Agree to City’s Sewer Use Fees

July 14, 2009 by   - () Leave a Comment

The city of Otsego, Minn., and Mississippi Riverwood Association finally came to an agreement over sewer installation costs and assessments to the seasonal RV park on June 30. 

The association, which has 119 owners who live in the park during summers, sought to reduce its costs further than what the city had already discounted the association last fall, according to the Elk River Star News

Installation costs include materials, such as sewer pipe and a lift station to pump the sewage, for a total cost of $86,895. Residents of the RV park can pay the assessment fee right away, or make annual payments for 10 years at 6% interest. 

Mississippi Riverwood must also pay $170,950 in sewer hook-up charges, and has until June 1, 2010, to hook up to city sewer, and to pay the fee. 

The charges are essentially the same Otsego offered last fall, according to City Administrator Mike Robertson. However, the association balked at the fees, claiming the city’s math flawed its calculations of what fees the RV park owners should pay. 

Otsego’s figures were correct, though. The association wanted a different set of equations used which would have lowered its costs by approximately $40,000. 

But city council members pointed out to park residents that what they were asking the city to do was to subsidize their actual costs for the sewer assessments and hook-up fees. 

In the end, Otsego, a community of 4,000 in southwest Minnesota, held to its policy of “users pay,” referring to any new infrastructure construction in the city. 

Water is not affected at this time, Robertson says, since the RV park’s well currently meets state standards. However, if the well fails at any time, the RV association will have to hook up to city water, and pay water hook-up charges, based on rates in place at that time.

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