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Gates County accepts state funding package to address failing Honeypot Road wastewater plant
Summary
The county approved a state funding offer that combines loan forgiveness and a low-interest loan to finance rehabilitation of an older wastewater treatment plant; commissioners discussed alternatives and long-term capacity implications for regional sewer projects.
The Gates County Board of Commissioners voted on Dec. 2 to accept a state funding package to finance rehabilitation work on the wastewater treatment plant on Honeypot Road, a facility the county acquired alongside a former state prison property.
County Manager Scott Sauer summarized the offer from the state's revolving fund: a $2.2 million package that includes $1.5 million in principal forgiveness and a $717,816 loan amortized over 20 years at 0% interest. The county's package also includes a $250,000 grant for soils remediation work moved out of the loan portion.
Why it matters: the older plant has been the subject of notices of violation in previous years, is currently not accepting additional flow, and the county has already brought a newer treatment facility online. Commissioners discussed whether it is more cost-effective to rehabilitate the older plant or rely on regionalization and conveyance to the newer, larger plant.
Several commissioners pressed staff and outside engineers on capacity and alternatives. Commissioner David Forsyth asked whether the county had evaluated pumping wastewater to the newer Cotton Gin Road plant rather than rehabilitating the older permitted facility; engineers and staff said the projects are different but that upgrades to the older plant provide redundancy and intermediate capacity (the older plant is rated about 15,000 gallons per day; the newer plant about 40,000 per day). County staff noted expected enterprise fund balance of roughly $3 million at June 30, 2024 and said the loan obligation would not begin until construction is finished, leaving time to seek additional grants or to accelerate payments from enterprise reserves.
The funding acceptance and a revised project ordinance reducing engineering costs were moved and approved in a single action. Commissioners discussed potential cost overruns and options including reducing project scope, supplementing with county funds, or seeking other state/federal grants. Staff said design and bid outcomes could reduce borrowing needs if competitive bids come in lower than estimates.
The board also discussed ongoing and planned sewer connections — including force mains to Buckland Elementary and T.S. Cooper Elementary — that would increase flow into the county's wastewater system and eventually bring other customers such as Merchants Mill Pond into the system. County staff said rates charged to the schools and future customers have not yet been set and will be determined as part of forthcoming rate studies for water and sewer.
The motion to accept the state funding offer and the revised project ordinance carried on a voice vote; no roll-call tally was recorded in the meeting minutes.
