Erie outlines multiyear water treatment plan, warns rate study and debt timing will be needed

Todd Wesserman, utilities director, told council the utilities program is planning major multiyear capital work including a redundant North Water Treatment Facility to treat Boulder Creek water, new water storage tanks and other system upgrades.

Wesserman said the initial phase will be expensive and that staff have been planning the plant for years. "This first phase of this plant is very expensive," he said, describing the approach to build infrastructure sized for future expansion to avoid repeat construction. He said some early procurement (electrical equipment, long-lead items) may occur before construction and that the overall project will likely be financed over multiple years.

To manage ongoing costs, Wesserman asked for four utilities positions (water resources manager, wastewater utility mechanic, storm drainage technician, distribution operator) and stressed a shift toward predictive maintenance to reduce emergency repairs. He said the water-resources manager position could recapture much of its cost by insourcing work currently contracted out.

Staff emphasized the need for frequent rate studies to ensure enterprise fund revenues can support debt service. "They handle big infrastructure projects and they can help us kind of figure out how to structure debt because that's what we'll need to do — issue bonds," staff said when describing work with PFM, the financial planning group. Staff said COPs are shown in the General Fund/CIF flows but that water projects would be paid by utility revenues and water-rate-supported bonds where appropriate.

The utilities presentation underlines that Erie will need to align rate-setting and tap/impact-fee policy with anticipated borrowing and construction schedules; council and staff agreed to revisit rate studies more often than the prior five-year cadence.