LULA — Lula City Manager Dennis Bergin predicts the city’s sewer taps will increase by $100,000 next fiscal year, while water taps will increase by $3,000.
Bergin presented those numbers as part of a draft of the 2017-2018 budget during a called work session of the city council Monday.
In his proposed draft budget, Bergin increased sewer taps from $25,000 in the current fiscal year ending June 30 to $125,000 next fiscal year.
Asked after the meeting whether the increased sewer growth will come primarily from residential properties, Bergin said, “Well, it’s both. We’re looking at trends, and historically what’s transpired. Fortunately for us, we’re having the opportunity to see the economy warming up so, yes, the majority of that will be residential driven.”
Two large subdivisions in the area of the city will account for much of the anticipated revenue.
“We’ve got two subdivisions that are coming on,” Bergin said. “We’re not actually even anticipating that they’ll maximize this year. We’re probably pretty conservative in our approach. But we’ve also got the industrial sites that we think we’re seeing some development opportunities up there, so we’ll play a role in that. I’d wager by the end of the year you’ll find that we were very conservative in our approach.”
Waterford Glen, located off Railroad Avenue on the Banks County side of Lula, includes homes of $160,000 and above, Bergin said.
“There are probably 80 home lots that when the economy went south, so did those lots,” Bergin said. “They’re coming back up to speed. We don’t anticipate all 80 will come online this year. As a matter of fact, again we’re pretty conservative. We probably may see 10 to 20, and that’s probably pretty conservative.”
Magnolia Station, located off Ga. 52, is the other residential development.
“It’s in unincorporated Hall County,” Bergin said. “It was approved by Hall County for 400 homes. No, we don’t anticipate 400 homes coming online this year. Initially on this phase it’s probably 80 homes and no, we don’t anticipate all 80 coming online.”
Bergin believes maybe 20 to 30 homes in Magnolia Station will come online during the upcoming fiscal year.
“In reality, Hall County approved those 400 homes back prior to the economy going bad,” Begin said. “Another 2,400 homes back at a similar time, 2007-2008, and those were all factors into what we ended up building for the waste treatment plant and the immediate need in that specific area.”
Asked about the cost of homes in Magnolia Station, Bergin said, “I think their price point is going to be $190,000 and above, or maybe $200,000 and above.”
Grading has begun in Magnolia Station.
“That development has a lot of opportunities, so we’ll see where that goes,” Bergin said.
Bergin is optimistic developers want to work with Lula as their water and sewer service provider.
“What we charge for a sewer tap versus the other surrounding communities has us being competitive,” Bergin said. “It’s an advantage that the development community, I think, begins to recognize. We’re meeting with a gentleman this week who’s got over 200 acres for development and guess what? Sewer taps, rate fees, those are all factors that he wants to talk about and we want to talk about for that matter.”
Budget discussions will continue as the city council begins its next work session 30 minutes early on Monday, June 12.
