Board members express concern about wastewater debt service, consent order and shrinking fund balance

Grand Island town board members pressed staff about financing for upcoming wastewater projects, saying the wastewater fund balance is declining and asking whether borrowing and grant applications are sufficient to cover planned work.

Board members said the town is already adding debt and that wastewater operations appear close to running short of reserves. One member asked how the town would pay for new stations and whether the town expects to raise sewer rates, secure federal or state grants, or rely on other revenue sources such as casino or bond proceeds.

Staff said some grant applications have been submitted and that there is a “high probability” of winning at least one award that would help, but no firm funding package was described in the meeting. Board members cited a consent order from the Department of Environmental Conservation (DEC) as a driver of required projects and said that the town must comply even if the funding path is uncertain.

The board discussed the possibility that the wastewater fund balance could be depleted in a few years if the department must simultaneously repay debt and complete mandated work. Staff said they are evaluating grant opportunities and will provide further details as they become available. Board members asked the town’s finance staff to look for options and report back.