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Tazewell council to pursue additional DEQ principal forgiveness after wastewater bids top estimates
Summary
Councilors were told wastewater treatment plant bids exceeded prior estimates; staff recommended, and council approved, asking the Virginia DEQ for extra principal forgiveness and funding to add bid alternates without raising rates further this year.
Town staff told the Tazewell Town Council on March 11 that bids for the planned wastewater treatment plant upgrade came in higher than earlier projections and urged the council to seek additional principal forgiveness from the Virginia Department of Environmental Quality (DEQ).
At a budget work session, the staff presentation traced how prior multi‑year sewer rate increases were adopted to fund planned loan payments for the project but said the most recent bid — including ad alternates such as a belt press and generator — exceeded that earlier estimate. "Thompson and Litton has recommended that we go after more principal forgiveness from DEQ," the staff member said, urging the town to apply for additional free money and noting DEQ staff encouraged the outreach.
Why it matters: The town had planned rate increases to cover two construction loans with a combined annual payment target of about $520,000. Staff said a revised financing structure could reduce the town’s share of debt service to roughly $372,000, but recommended keeping current rates for now until next year’s actuals are clearer.
Council action: After the engineering firm’s recommendation and a staff explanation of ad alternates and debt scenarios, a councilor moved and the council voted to authorize staff to pursue additional DEQ funding and principal forgiveness and to work with Thompson & Litton and DEQ on formal requests. The motion passed on an affirmative vote.
What the town asked for: The funding request aims to cover bid overages and to add ad alternates back into the project if DEQ awards more principal forgiveness; staff emphasized that seeking the funds would preserve the town’s planned scope rather than immediately increasing rates.
What’s next: Staff will prepare the DEQ funding/forgiveness application, coordinate with Thompson & Litton on supporting documentation and return to council if the funding picture changes or if the town must make policy decisions about rates or scope.
Council minutes and staff documents in the public packet contain the precise bid figures and the proposed financing scenarios; staff told council that, if the additional funds are not secured, they will revisit the potential need for rate adjustments in future budget conversations.
