Canton, sold 10 years ago on building a reservoir that would cost $20 million, is trying to unload its stake in the Hickory Log Creek Reservoir that turned out six times more expensive and hasn't delivered a drop of water yet.
“We bought something and we can’t pay for it,” city councilman Bill Bryant said during a special sewer and water work session called by the city last week.
Canton is attempting to get out of its 25-percent stake in the reservoir while retaining rights to some of its water.
The 411-acre reservoir is filled but likely won’t be tapped for another year because of construction and permits needed. Cobb County Marietta Water Authority owns 75 percent of the reservoir. For its approximate $30 million stake, Canton has the right to withdraw 11.4 million gallons of water per day, according to the agreement in place.
“If there is any way we could hold onto a portion of that [water], I would like to see that,” Mayor Gene Hobgood told the council during a 90-minute work session Thursday. In June the city hiked its water and sewer rates 20 percent, in part to pay for the reservoir.
That increase has been compounded by glitches in the water department’s new billing system -- one customer told the city council her water bill jumped from $40 per month to $452 -- and has created a “perfect storm” of customer outrage in recent weeks, Canton chief financial officer Scott Price told the mayor and council.
Ward 3 Councilman John Beresford for months has pushed hard for the city to sell the reservoir he describes as a “financial disaster." Even if Canton could afford its portion of the reservoir costs, he feared the state will take over the reservoir in a few years to meet the metro area's growing need.
“The government has a way of taking something they want,” Beresford said. “This is going to become a big liability. I am in favor of negotiating the best deal we can and getting out from all this debt. The reservoir represents half the city’s debt.”
The council and mayor agreed to try to renew talks it began last spring and that stalled with Cherokee County Water and Sewage Authority. They hope to strike a deal whereby the authority would take over the city’s reservoir debt and operate the city water and sewer system.
In exchange, Canton would get access to 6 million gallons of water daily from the reservoir to meet future demand. If the city can strike a deal with Cherokee, then it would take that deal to Cobb County Marietta Water Authority, which has the right of first refusal.
Mayor Hobgood said the city hopes to speak to Cherokee water officials early this week, and will schedule weekly sessions with the city council until the city “gets this issue resolved,” Hobgood said. “We’re going to have to stay at it until we reach a decision.”
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