Merge Or Not to Merge Is the Question

Merge or Not to Merge is the Question??

In recent legislative sessions of the NC General Assembly there has been pronounced effort to determine if Merger/Regionalization is a solution to cut costs or add efficiency throughout the NC economy. One area that has been identified as a strong possibility is water/sewer systems. That is especially true in small Towns and Communities where textile mills have closed. During the peak, textile mills used lots of water/sewer. After their closure, Communities found reduced demand and reduced revenues. Many of the fixed costs to operate, maintain and replace capital items still existed.

The legislature created a fund to offer grants to local communities to see if Merger/Regionalization would work for them. Town of Denton and Handy Sanitary District discussed the idea and decided to apply for a grant. Last year the Department of Environment and Natural Resources (DENR) offered Handy Sanitary and Town of Denton $50,000 to study the water systems and $50,000 to study the sewer systems. Handy Sanitary District (HSD) was selected as the lead agency to perform the work. On May 16, HSD contracted with MBD Engineering to perform the work after reviewing several Qualifications Packages.

The Study is anticipated to take 9-12 months to complete. The first question to answer is: “What happens if we do nothing?” In order to answer that question the Study will review two important areas. First, the equipment, piping and physical structure will be analyzed. Next, a financial audit of the cost of operation, maintenance and capital needs will be assessed of the past and for the future.

To begin the Study, citizens will be invited to hear the plan of action and ask questions. After the data has been collected and analyzed they will be presented in a meeting with time for Q&A. At a subsequent meeting, a list of recommendations will be also presented with more time for Q&A. Finally a decision will be made by Town of Denton and Handy Sanitary District to ask their water and sewer customers how they should respond.

Will there be a Merger? If so, will it be only operations or will it include assets too? Or will there be a decision for no action and to remain as we are now. The final decision will be made as a response to the Community decision.