Walloon Water System Price Hike, Purchase to go forward for $1.379 million

By Beth Gohs, Staff Writer

Walloon Lake Water System owner Dennis Hass’ demand for an additional $79,000 didn’t hinder the township’s decision to move forward on a plan to purchase his water system.

The Walloon Township Board ended its June 10 discussion on the matter with a plan to hold a meeting within the next few weeks where it will likely agree to purchase the water system for $1.379 million.
One audience member mentioned that the original asking price was $1.3 million, and asked whether the price would continue to increase.
The board said the price would stop changing when they signed the agreement.
According to Melrose Township Supervisor Vern Goodwin, Melrose Township will apply for a USDA loan to purchase the water system.
Goodwin also said water prices to customers would change depending upon the final purchase price.
“Once we know how much it costs to operate the system we can recalculate rates… We won’t know what that exact data is until we generate that exact data,” Goodwin said.
Loan payments could be $8,242.85 per month at five percent interest.
The set price would clear the township of the debt in two years.
One audience member asked if improvements could be made to the system before it is paid off.
“We have been advised not to make any improvements, unless necessary, until we own it,” said Goodwin.
Goodwin said finalization of the proposed agreement should take no more than two weeks.
One audience member asked what rights Hass will retain.
“We have total operational control,” said Goodwin. “Only if we mess up, if for whatever reason we don’t make a payment on time. As long as we make our payments and maintain it comes to us, but we’d have to do that anyway.”
At the end of the meeting Goodwin asked if anyone in the audience opposed the purchase, none spoke, commissioners confirmed there would be a meeting to sign the agreement.