Council, staff stress urgency of wastewater plant upgrade as grant eligibility hinges on rate study

Greenfield Mayor White and city staff told the City Council that the city must replace its aging wastewater treatment plant to meet state standards and to remain eligible for state funding for a proposed $110,000,000 project.

The council’s discussion on the treatment plant centered on financing and the role of a rate study required by the state. "We have to pass the rate study in order for us to be eligible to receive the $75,000,000 grant," Mayor White said. He added that the state also offered low-interest loans and that the city must show it has a mechanism to repay any loan portion.

The rate study lays out potential monthly sewer rates under different financing scenarios, Mayor White and city staff said. "The new program says they can grant us $75,000,000 and offer us loans for $36,000,000 at low interest," Mayor White said. "There's no guarantee that we will receive the grant if we pass the study. But if the study is not passed by council and the community, we definitely will not receive the $75,000,000 grant." He said the state may award less than the maximum and advised planning for the possibility of limited or no grant funding.

City Manager Paul described the state's requirement that the application demonstrate a credible plan for debt service. "We had to do a rate study to figure out the grant we wouldn't have to pay back. But the low interest loan, we need to pay debt service. We need to make annual payments on it. So we need to raise rates," Paul said. He explained the study included both a lower scenario (assuming the maximum grant plus loans) and a higher scenario (assuming little or no grant funding), and that the higher scenario is what many residents focus on.

Mayor White and staff said the existing plant is over capacity and that expanding the current facility would not sufficiently improve the quality of effluent that goes into the ground. "We need to replace the current plant because expanding it won't make the quality of what's going into the ground any better than it is now," Mayor White said, adding the problem has persisted for many years.

Council members and the mayor encouraged public attendance at two upcoming workshops intended to explain the rate study and new rate structure in detail: September 30 and October 6. Mayor White emphasized those sessions are the appropriate venues for detailed questions about bills and rates and urged residents to attend.

The council did not take a formal vote on the wastewater project or the rate study at this meeting. City staff said the typical process is (1) complete and adopt a rate study, (2) if council approves, place the measure for voter approval where applicable, and (3) pursue state grants and loans. Mayor White said passing the rate study is a condition for eligibility for the $75,000,000 grant but does not guarantee grant award.

The council framed the timeline and next steps: staff will present the rate study and scenarios at the scheduled workshops and return with more specifics about what the proposed rate structure would mean for household bills under different financing outcomes.