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Escalon council hears strategic-plan update as surface-water funding shortfall prompts new revenue options
Summary
At its June meeting, the Escalon City Council received a quarterly strategic-plan update that flagged a funding gap for a proposed surface-water project and outlined a phased approach and industry partnerships for a roughly $40 million wastewater plant.
Escalon City Council heard its fifth quarterly update to the strategic plan at the June meeting, where staff flagged a funding shortfall for a surface-water project and described a phased, partnership-driven approach to a multiyear wastewater-plant overhaul.
City manager said the city "did find out we do not have as much money as we thought we had" for the surface-water project and that staff are "exploring new revenue sources," including negotiating a lease of the city’s allocation of surface water to other nearby cities. If successful, the lease would generate revenue that could be applied to the project’s costs, staff said.
On the wastewater side, officials described taking a previously estimated $40 million program and "chunking it into phases" to make the work more affordable and ready to implement. The first phase is focused on the industrial side of the plant, council was told, and talks with industry partners are underway to fund that initial work. Staff said they were considering a design–build delivery to speed procurement and construction and to obtain firmer cost estimates.
The strategic-plan lead reported the city is in "very serious conversations with industry to fund" phase one, and staff set a tentative target of late 2026 into early 2027 to begin that phase. Council members said staging the project makes it attainable while allowing the city to pursue outside dollars and partnerships.
Why it matters: The surface-water and wastewater projects are among the city’s largest planned capital investments and will shape Escalon’s ability to serve residential, commercial and industrial users while meeting regulatory requirements. Funding and delivery choices now will determine the timing and cost burden for residents and businesses.
What’s next: Staff said they will return with details as proposals for water leases and potential industry funding mature and as procurement plans for a phased wastewater upgrade are refined.
