Special Assessment Districts or SADs are the method used to raise funds for specific community or districts. They are in essence a special tax that is used for very specific uses. Some examples are SADs for the maintenance of private roads in a subdivision or for community septic systems. The money collected in these SADs are controlled very closely by the Township to ensure the money is only used for exactly what the tax was created for.
In our lake associations, we have 3 separate SADs for 3 distinct purposes. They are:
Square Lake Water Quality Control SAD #1, used for pump & well maintenance which includes replacement of a well (below you will find an update on well #2 from June of 2022).
July 2023 Updates for SAD Renewal:
In the past 8 years we have spent over $43,000 on pump maintenance. This includes $15,718 for the rebuilding of pump #2 in November of 2022. Having been in service for approximately 20 years, welll #2 was rebuilt in November of 2022. Both the motor and pump were replaced.
As of July 2023, Well number 1 has gone down and will soon need to be replaced. To replace this well
the total funds estimated add up to between $80,000- $100,0000.
Future plans for a 3 rd well will make up the difference from the loss of well #1.
Two wells are required to maintain optimum lake levels.
Why do we need a well? Prior to the 1970’s the lake was a natural spring fed body of water. Due to nearby construction in the 1970s, the water flow was diverted, lowering the lake levels dramatically. Without the wells our lake will dry up quickly.
Please see link for further history: https://www.squarelake.net/home/history
Square Lake Water Quality Control SAD #2, used for paying the electric bill associated with running the 2 wells.
The electrical bill to run the wells in 2021 was $16,258. In 2022 it jumped to $17,549. We can expect this
expense to continue to rise. And will utilize this SADD to pay for these bills.
Square Lake Water Quality Control SAD #3, used for lake treatments for weeds, algae, and other invasive organisms that would pollute or take over our lake. To treat our lake yearly based on recommended professional treatments the average cost is between $12,000-15,000, depending on the treatments needed which can vary from year to year.
How are the rates determined for the SADs?
Actually, a pretty logical method is used. The community or district (in this case the DLA of Square Lake) submits a projected cost estimation for the life of the SAD which is usually 5-10 years. The township will approve a cost estimate after 2 public hearings and a vote. During the life of the SAD, if all the money is not used or the balance builds up, the township will stop collecting excess money until the balance drops back to appropriate levels. That happens after an annual evaluation that looks at incurred costs in previous years.
The second part of the rate levels of the SADs is determined by the individual property attributes (size, location). In our DLA, lake front owners pay 80% of all SADs collected. The non-lake front property owners pay 20%. The amount is divided between all property owners. As an example: 80% divided by 117 lakefront owners and 20% divided by 144 non-lake front owners. This money is collected in the winter taxes that are assessed in December of each year.
The average cost for the last SADs were:
SAD #1: lakefront owners =$54.56 per year and non lakefront owners = $11.08 per year
SAD #2: lakefront owners = $133.07 per year and non lakefront owners = $27.03 per year
SAD #3: lakefront owners = $105.80 per year and non lakefront owners = $21.49 per year
Click below to read about the most recent SAD which was passed in 2019.
Well #2, having been in service approximately 20 years, is currently being refurbished.
The service project was unexpected. A problem originated after an area wide power outage in late Spring of 2022; the pump’s electric motor failed to re-start. After preliminary investigation and diagnosing by a licensed electrician it was determined there was a problem internal to the well and not with the above ground electrical service.
Ed Birkmeier Well Service responded to the DLA’s request for advice. The Birkmeier team confirmed the initial diagnosis, the problem is internal to the well.
The photographs, taken on Thursday, 6/16/22 help provide an understanding of the scope of this service call. They also illustrate the level of hardware necessary to pump water at a target flow of 500 gallons per minute from 200+ feet down to help maintain Square Lake and Little Square Lake’s water level. The piping is attached to the output side of the electric motor (30 HP, 480 Volt - 3 phase) and pump assembly for water delivery up to the surface and into the lake. The motor and pump were removed for further analysis and bench testing for performance. As of this writing the condition of the electric motor (the mechanism for the suspect failure mode) is unknown, and the pump’s efficiency or output is tbd. Results are expected soon.
The DLA’s position is to maximize value for the costs incurred by restoring Well #2 to its original output target flow capacity minus any deterioration realized because of changes in ground formation (at the well’s intake) due to 20 years of service. This is the best we can expect and it’s a very good recovery. In addition, with new electrical hardware being installed when the well is reassembled, we anticipate a reduction in electric service demand.
The DLA thanks everyone who has volunteered their time and energy assisting with this issue. We are working as expeditiously as possible to get Well # 2 back up and running.
Signed,
The DLA Well Committee
Fun fact: Did you know that if we decrease fertilizer usage along our lake shoreline, we will drastically reduce algae blooms? This is because fertilizers contain phosphorus and too much of it encourages blue-green algae to grow.