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PRESS RELEASE
October 21, 2005
CONTACT: Darrin Lautenschleger
  Public Information Officer
  TOLL-FREE: (877) 363-8500
  E-MAIL: darrin@mwcdlakes.com

MWCD cost-benefit analysis receives approval


     The Muskingum Watershed Conservancy District’s Board of Appraisers will receive some expert assistance in evaluation of the benefits from both the MWCD system of dams and reservoirs, as well as from the proposed maintenance and improvement plan for them.

     Members of the MWCD Board of Directors have approved a request from the three-member Board of Appraisers to obtain technical assistance as the appraisers continue their work related to the proposed $270 million maintenance and improvement plan for the flood reduction system.

     The MWCD’s maintenance and improvement plan (which is the Amendment to the Official Plan of the MWCD), approved earlier this year by the Conservancy District’s Board of Directors and Conservancy Court, would be funded through an assessment of owners of property in the 18-county MWCD region. The assessment, which has been estimated to cost $12 per year for owners of residential and agricultural properties (with industrial/commercial still being developed), has been projected to begin collection in 2007 and include the combination of parcels with the same owner and use code.

     By law, the Board of Appraisers must identify the benefits as part of its work to develop the methodology of the assessment program. During their meeting today (Oct. 21) at JIM’s Place in New Philadelphia, members of the Board of Directors received an update on the progress of the work of the Board of Appraisers, including the benefits evaluation.

     “Ohio law dictates that the Board of Appraisers must conduct a cost-benefit analysis, and upon completion of their work they must conclude the benefits outweigh the costs of the project in order to go forward with the plan,” said John M. Hoopingarner, MWCD executive director/secretary.

     During a recent meeting, the Board of Appraisers reviewed a basic list of benefits, but also agreed that many more benefits may exist and that some expertise would be needed in order to determine an economic benefit estimate.

     Ohio law authorizes the state’s conservancy districts to levy assessments. Three basic classes of parcels are subject to the assessment: residential, agricultural and commercial/industrial. The Conservancy District has proposed that parcels of properties that are adjacent and have the same property use code will be consolidated for purposes of the assessment.

     An estimate for the cost to owners of commercial/industrial property as part of the assessment plan is being developed.

     Since its inception, the MWCD has operated on revenue primarily from the use of its facilities through various fee structures and the stewardship of its natural resources. However, this funding alone cannot address the large-scale needs and costs associated with the aging system, which are showing the effects of sedimentation, erosion and other issues that can have a negative impact on flood reduction and water quality benefits.

     The MWCD, the largest of the estimated 21 conservancy districts in the state, is believed to be the only one active district that does not collect an assessment for maintenance of its facilities.

     More details about the Conservancy District and the Amendment to the Official Plan is available online at www.mwcd.org.

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