Tuckahoe Creek

Tuckahoe Creek Service District

Third place, general news writing, Virginia Press Association 2009

Read about the follies of Goochland's local government, as it tries to fix a myriad of problems with a controversial service district that has put the county in great debt, and could potentially cause utility rate increases to skyrocket over the next few years.

Money flowing out of county’s Tuckahoe Creek

Flushing it all away

Tuckahoe Creek: Innundated with problems

Utility rates, connection fees poised for increase

Goochland meets with Kinloch

Goochland board punts water rate hike

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Goochland board of supervisors

Community Development

Economic Development

Utilities department

Money flowing out of county’s Tuckahoe Creek

When the county developed the Tuckahoe Creek Service District in 2002, it was to be a public utility that would absorb much of the new commercial and industrial growth anticipated to hit Goochland.

But development has been slower than county officials projected, and residents may be footing the bill for the controversial investment.

Lane Ramsey, interim county administrator, reported to the board of supervisors on July 7 that TCSD utility rates need to increase as much as 16 percent to make up for the

$125,000 projected loss. County rates could go up three percent as well.

“Tuckahoe Creek, I think, is gonna be an issue for us,” Ramsey said. “[We need to] look at the [utilities] system long term to determine the viability of it being self-supporting.”

TCSD residents have voiced their opposition to rate increases to make up for the county’s alleged mismanagement of funds.

“Why should we pay more for service when they can’t even fix our water?” said Kathy Maxwell, a resident of the Kinloch subdivision, which has been a source of numerous water complaints.

Other Goochland residents, including Ben Slone, are concerned about what they consider a lack of transparency of the TCSD system.

“There’s too much smoke and mirrors,” Slone said. “The real problem is the lack of quality information.”

Currently, the county is auditing its utilities, separate from the county’s annual comprehensive audit. Ramsey also suggested that the county engage in a comprehensive evaluation of the utilities system, which would come at “a fairly significant cost,” he said.

Malvern R. Butler, District 4 supervisor, mentioned the need to increase the connection fees to make up for the loss in revenue.

Ramsey said that connection fees don’t go towards operating costs which is why they weren’t considered when the utility budget was reviewed.

Earlier this year, supervisors transferred $400,000 from the utility fund to the general fund, which compounded the debt issue.

“I think the board had to do a number of things this year to balance the budget,” Ramsey said.

The TCSD advisory committee will meet at 9 a.m. on August 3, at the Goochland County Administration Building.

- Published in the July 16, 2009 edition of The Central Virginian.

Flushing it all away

Stinky water has a price.

For Goochland county taxpayers, it may be more than $250,000 every year, in addition to a potential 16 percent utility rate increase for Tuckahoe Creek Service District residents.

In response to numerous water-odor complaints from residents in the TCSD, county officials began regular flushing of the water system on June 13, 2008.

“Everybody knows about our water problem,” said Kathy Maxwell of Kinloch, a subdivision within the TCSD. “Sometimes there are black flecks in the water. It doesn’t smell good.”

Don Charles, director of community development, said the flushing has helped decrease complaints of smelly water, but that the cost of flushing is quickly adding up.

Charles said that during a six-month period, the county flushed approximately 1.5 million gallons of water from Kinloch’s water system at a cost of approximately $35,000, which includes labor and the value of the wasted water.

In addition to Kinloch, Charles said the county also flushes water at two other locations in the TCSD. The utilities department estimates that Goochland flushes between 18 million and 22.5 million gallons of water annually.

Charles said that residents living within the TCSD use, on average, 630,000 gallons of water per day, with roughly 10 percent of that water being lost due to flushing the lines to prevent stagnation.

When the $64 million TCSD project was developed 10 years ago the economy was strong, so the project was created under the assumption that development would continue to increase, Charles said.

“In a perfect world, the developers would have foreseen the economic downturn,” Charles said. “But this is what we have. It’s not anything unfamiliar, it reflects the problems that are happening all over the country.”

But residents within the TCSD are unhappy with the water problems, especially now that the county has considered increasing utility rates as much as 16 percent for those in the TCSD, and three percent county-wide.

Goochland resident Ben Slone is concerned about the legality of such a tax increase.

“The [TCSD] system costs may fall to every county tax payer,” Slone said. “[That ]is not in accordance with the TCSD charter.”

James Eads, District 5 supervisor, said that tax rates must reflect the cost of the bonds issued to build the TCSD.

On Monday, Lane Ramsey, former county administrator, informed the TCSD advisory committee that the Virginia Resources Authority, the agency that issued the bonds to build the TCSD, has been waiting for the county to report its projected rates for the upcoming fiscal year.

“They’ve been waiting since June for us to come to a decision,” Ramsey said.

He later added that in several months the county will owe $3 million to Henrico as part of a utility development contract, but that the county utility fund is insufficient.

“We recommend that the board loan the $3 million from the general fund to the utility fund, to be repaid over a period of seven years,” Ramsey said.

Earlier this year, the board of supervisors approved a transfer of $400,000 from the utility fund to the general fund.

“We’ve had to do a number of things to balance the budget this year,” Ramsey said at the July board meeting.

Slone said the water issue is a constant reminder of the underdevelopment at TCSD.

According Charles, the county purges the lines several times a week by opening up fire hydrants. The county is in the process of building a $35,000 automated flushing system at Kinloch that would operate based on water usage—the more water residents use, the less water will need to be flushed.

“The water will run out and naturally aerate,” Charles said. “The turbidity releases the chlorine, and by the time it runs off its safe [for natural water systems].”

When the automated flushing system is installed, the water will run into the irrigation pond at the Kinloch Golf Club, and be used to water the golf course at no cost to Kinloch.

Although the KGC receives the water at a cost for taxpayers, Charles said the club can not reasonably be asked to pay for the water.

If the flushing system does not work, Kinloch developers may have to re-configure the irrigation system at Kinloch, which would improve the water flow, Charles said.

Charles added that he is confident the flushing stations alone will mitigate the situation.

- Published in the August 6, 2009 edition o The Central Virginian

Tuckahoe Creek: Inundated with problems

Issues concerning the Tuckahoe Creek Service District are piling up. County officials are still digging through a plethora of service discrepancies, resident complaints, and bills to be paid.

“It’s a big mess,” said Rudy Butler, District 4 supervisor. Part of the TCSD lies within his administrative district.

Butler said the major issue has been underdevelopment, which has led to solutions such as flushing-out water systems that aren’t being used at capacity.

According to Don Charles, director of community development, when an automated flushing station is installed for $35,000, Kinloch Golf Club will receive the flushed water free of charge, and will use it for irrigation.

Ned Creasey, District 3 supervisor, said that Goochland residents living in Randolph Square and other subdivisions along River Rd. already receive water and sewer from

TCSD but do not pay the ad valorem tax, which other TCSD users pay to help finance the operating costs until development picks up. The ad valorem tax rate is set at $.23 per $100 of assessed property value.

Lane Ramsey, former county administrator, noted that West Creek businesses also receive TCSD services but pay no ad valorem tax. He said it could be dangerous to remove West Creek from the TCSD because it would decrease water use dramatically, and exacerbate the stagnant-water situation.

Charles said that TCSD has access to 5 million gallons of water from Henrico, and that the county uses a fraction of that capacity.

“That’s why we have to flush the water regularly,” Charles said.

Goochland purchases its water from Henrico for $1.68 per 1,000 gallons and charges $3.33 per 1,000 gallons for the county and James River systems, and $2.95 for the TCSD.

A proposed tax increase would make the TCSD users pay $3.33 per 1,000 gallons and county system residents would pay $3.50.

“We need to combine all systems into one large system,” Butler said.

Creasey agreed.

“We need to consolidate, and refinance the whole thing,” he said.

James Eads, District 5 supervisor, also has constituents within the TCSD, but he thinks the water districts should stand alone.

“The systems can not be commingled,” Eads said at the August 4 meeting. “They were not set up to operate that way.”

The tax increases would help the county pay three large bills–one to Richmond for expansion of their sewage treatment facility, to Henrico for water-line upgrades, and to the Virginia Resource Authority which issued the $64 million bond to build the TCSD.

“You add it all up, and we got a $100 million system,” Butler said. “We could have built our own for about $43 million.”

A September 1 public hearing was set to discuss the tax rate increase, which would also boost the connection fees in the TCSD to $10,000, up from $7,000.

- Published in the August 13, 2009 edition of The Central Virginian

Utility rates, connection fees poised for increase

Utility rate increases are creating steam, especially for residents in the Tuckahoe Creek Service District.

On September 1, the board of supervisors will conduct a public hearing to discuss raising connection fees in the TCSD from $7,000 to $10,000 and increasing usage rates by 12 percent. The other utility districts, James River and General County, are scheduled for a five-percent rate increase.

Rebecca Dickson, county administrator, said that Goochland’s water and sewer rates are not generating enough revenue at current levels to pay the $64 million debt service to the Virginia Resource Authority. Dickson also said that Goochland owes money to the city of Richmond and Henrico County for water and sewer upgrades–part of Goochland’s agreement with the localities.

“At the rate we’re going, we will have only paid back about half of what we owe by the end of the agreement [with Richmond],” Dickson said at the August 4 meeting.

Scott Gaeser, chairman of the TCSD advisory committee, said that the rate increases could help in the short-term, but that the county needs a big picture solution.

“We’d have to double the [utility] rate increases every year to keep up with the debt service payment,” Gaeser said.

According to a report provided by Lane Ramsey, former county administrator, the county’s debt service payment increases each year and the county will be operating in the red by 2016.

In addition to the rate increases, Ramsey recommended a $3 million loan from the general fund to the utility fund to help pay back the debt. However, even with the loan the utility fund would still have a negative fund balance by 2019.

Gaeser said that the only solution would be for the county to absorb the TCSD and consolidate the various utilities systems.

“The revenue [from TCSD] benefits the whole county,” Gaeser said. “We have to be proactive and encourage development if we want to get past this.”

Supervisors Ned Creasey and Rudy Butler agreed with Gaeser, noting that the structure of the three utilities systems is complex and confusing because of billing procedures, interconnected systems and past mismanagement, and the most efficient solution would be to consolidate the systems.

Gaeser was also concerned that real estate assessments were too high, and that values needed to be reduced to 2005 levels to more accurately reflect the market.

“Most [Goochland] properties are over-assessed 20 to 40 percent,” Gaeser said.

According to the county assessor’s office, TCSD home values have increased an average of 30 percent a year for four years–double the increase of other county properties. Since 2005, TCSD properties have increased in value by 118 percent.

Gaeser said that he believes the county is over-assessing the properties to create a higher tax base to pay the VRA-issued bonds.

“That’s simply not true,” said Glenn Branham, county assessor. “The assessments are based on sales within the neighborhood. If you look at the sales, the assessments are defended.”

Branham said that the difference in assessed value between the county and the TCSD is due to new construction.

“We’ve had a couple hundred homes built since 2005,” Branham said of the subdivision Kinloch, which is part of the TCSD.

Kinloch had nine properties for sale ranging in price from $625,000 to $2 million as of press time, and Branham noted that construction projects within the TCSD tend to be more expensive than properties outside the district.

Branham reported to the TCSD advisory committee that he had never received instructions from any county official to artificially inflate real estate values

Ramsey’s report projected a 10-percent decrease in the tax base due to the economic recession, and that values will increase after three yearsof no growth.

Gaeser insisted that the values would still be too high, and the county had not devised a plan that would be viable for the long-term.

“We’re looking into all available options,” Dickson said regarding solutions to the lack of revenue and loan repayments. “We will get it under control. It just takes time.”

The September 1 public hearing will be held at 7 p.m. at the administration building.

- Published in the August 27, 2009 edition of The Central Virginian

Goochland meets with Kinloch

Kinloch residents are looking for solutions to a complex array of problems regarding the Tuckahoe Creek Service District.

On August 27, the Kinloch Advisory Board met to discuss utility rate increases, water odor and management concerns.

“The group was wanting honest answers to many problems,” said Ned Creasey, District 3 supervisor who attended with Rudy Butler from District 4.

Kinloch resident Bob Minnick organized the informal gathering, and said that the county has made significant progress but problems still remain.

“We’re sending out a survey to try to isolate some of the water issues,” Minnick said during a phone interview.

Minnick said that Rebecca Dickson, county administrator, and Don Charles, director of community development were also present to help address citizens’ concerns.

In an effort to mitigate the water odor which exists because of low water usage, the county has been flushing 1.08 million gallons of water from Kinloch’s fire hydrant on a monthly basis, according to Matt Saccone, utilities engineer.

Saccone reported that Goochland flushes water at nine different locations within the TCSD. Since 2007, Goochland has flushed more than 37 million gallons of water, costing taxpayers more than $62,000.

Charles said that Goochland is also purchasing an automated flushing station at Kinloch for $35,000, and that another automated station may be needed for other locations.

The flushing station will send water to the irrigation pond at Kinloch Golf Club. Dickson said in an interview that the county would consider other recycling options for the water that the golf club would use free of charge.

The county is also considering utility rate increases for the TCSD. The board of supervisors heard a resolution to increase rates by 13 percent on September 1, after press time.

“I think people in [Kinloch] would entertain rate increases,” Minnick said, “as long as it was part of a county-wide plan.”

Minnick noted that the TCSD tax revenue benefits the entire county, and that the county should be involved with mitigation.

Dickson said that the TCSD utility rate increase was the first of several potential rate increases.

“We need to take a look at the debt in [the TCSD],” Dickson said. “Maybe we ought to restructure. It’s a complex situation.”

The county is currently developing a request for proposal to better understand the structure of all three county utility systems, and Dickson hopes to have the RFP ready for the October board meeting.

- Published in the September 3, 2009 edition of The Central Virginian

Goochland board punts water rate hike

East Goochland residents are not excited about paying more for utilities.

At the September 1 board of supervisors meeting, 14 citizens expressed concern with the proposed 13 percent rate increase in the Tuckahoe Creek Service District and the five percent increase in the general county utility system.

Before the public hearing, supervisors held a work session to discuss the proposed rate increase and decided to defer the vote.

“I’m not going to support anything until we correct this imbalance,” said Jim Eads, District 5 supervisor.

Eads said that he wanted the county to set rates that “represent a recouping of the money we’ve paid out of the general fund over the years for water and sewer capacity here at the Courthouse.”

Rudy Butler, District 4 supervisor, said that he wanted to make connection fees the same in each service district, which was not part of the proposed rate increase.

Supervisors unanimously deferred, deciding to gather more public input to create a plan that better represented the public’s interest.

Arthur Myers of Lower Tuckahoe told the board that in 1971 the residents of his subdivision paid for water lines connecting them to municipal water.

“We paid our way, now you want us to pay for Tuckahoe Creek Service District,” Myers said at the meeting.

Scott Gaeser, a TCSD landowner, said that he has paid his own way, as Myers had.

“These rate increases don’t make sense,” Gaeser said. “It’s hard to see how people are paying different rates.”

Residents in the TCSD pay $2.95 per 1,000 gallons of water, and residents in the general county system, including Lower Tuckahoe, pay $3.33 per 1,000 gallons.

Ron Nease, a general county user in the James River Sanitary District, was curious as to why JRSD users pay more for water.

“Has Henrico or Richmond raised their rates, whatever they charge us?” Nease asked.

Butler said that rates were increased several years ago, but had not changed recently.

“I don’t think other districts should pay for mistakes made in [the TCSD],” Nease added.

Gaeser echoed many citizens’ comments as he urged the board to create plans that would attract development rather than stifling investment by raising connection fees and rates.

But general county system users were already upset at paying more for water than TCSD users, and were not willing to accept the five percent increase.

“The TCSD system was built with debt, with bonds,” Nease said. “We paid for ours out of pocket."

County records indicate that TCSD users pay an ad valorem tax of $.23 per $100 of assessed property value to help pay the system costs until development improves.

David James told the board that he pays an ad valorem tax but receives no sewage service.

Phil Gaeser lives outside the TCSD, but his property is surrounded by TCSD users.

“I wrote a letter, trying to get into the TCSD,” Gaeser said.

Gaeser claims he was never allowed a connection, and he has since spent $16,000 to install a 650-foot well.

“I don’t think I want to be on [the TCSD] system anymore,” Gaeser said.

- Published in the September 10, 2009 edition of The Central Virginian