Utility committee hears updated wastewater expansion plan with $32.5M–$46M estimate; committee reviews financing options

Chris, a presenter for the utility project, told the Pataskala City utility committee that the wastewater treatment plant expansion design is at roughly 60% and carries a low-range cost estimate of $32.5 million and a high-range estimate near $46 million. He said design work is scheduled to be complete by April 30, with construction bidding planned for August (two-month bid period) and construction starting in January next year; the project’s final completion is targeted for October 2029, though the plant will be online earlier.

The project team presented 3D renderings and technical details for site work behind Bridal Waters and described several major components: upgraded headworks with a finer micro-screen to reduce pump clogs; larger biological treatment tanks with aeration for nitrogen removal; a four-chamber section intended to remove phosphorus without chemical dosing in normal operating conditions; an indoor blower building to cut noise; an 85-foot clarifier chosen as a cost-saving measure; an automated fixed-rack UV disinfection system to ease maintenance; expanded sludge storage domes; and a new septic receiving station for cleaned holding-tank and lift-station waste. Chris summarized the plant layout and emphasized designs intended to allow staged expansion to 3 million gallons in future phases.

Why it matters: committee members and staff emphasized that stricter EPA nutrient limits and regional growth have increased the project scope and cost since earlier estimates. Chris said the EPA’s nutrient reduction program could cover about $12,000,000 of qualifying work at 0% interest, and noted one illustrative loan estimate of about $42.2 million if the city finances the full build. He presented a design fee already under contract at $3.9 million and said bids could come in as low as about $35 million or as high as $50 million depending on market and inflation assumptions. “The low range right now is 32 and a half million, and the high range is 46,000,000,” Chris said.

Financing and tradeoffs: staff reviewed potential funding mechanisms, including Tax Increment Financing (TIF) proceeds, increased capacity fees, sewer-rate increases, grants without restrictive Buy America/Build America requirements, developer fees, and debt-elimination fees. Chris said earlier TIF modeling assumed about $20 million in proceeds but that rising home-sale prices could push that nearer $27 million in a more optimistic scenario; he cautioned, however, that TIF and developer-fee revenue would only materialize after development connects to the new plant. He warned of grant constraints tied to buy-American requirements and household-income metrics that could make some 0%-interest grants inapplicable. On possible user impacts, he gave an illustrative example of an approximately $47-per-month increase for users under one debt scenario, and noted smaller or phased rate increases were under discussion: “It’s about $47 a month additional on the users,” Chris said.

Risks and next steps: Chris and committee members discussed uncertainty around loan underwriting and timing. He said the EPA/DIFA review will include ability-to-repay tests and that the city’s current application may need strengthening before an award. He warned that without funding and construction, development east of Columbia Road could be blocked. “If we don't do this, the worst case scenario would be we design a plan if we don't build it. If we don't build it, everything East Of Columbia Road stops,” Chris said. Staff offered follow-up briefings and plant tours to familiarize newer committee members with operations and the expansion plan.

The committee did not take a formal funding vote at the meeting; members agreed to schedule an additional utility committee meeting in April to continue review. The moderator called for and received a motion to adjourn, which passed with recorded 'Yes' votes from Hampshire, Waggy and Galek.