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Commissioners weigh using Newberry neighborhood land proceeds for groundwater protection and septic replacements
Summary
County staff and Neighbor Impact presented options for investing proceeds from potential Newberry neighborhood land sales into groundwater protection funds. Neighbor Impact reported constrained resources (septic fund balance ~$18,000) and asked for county support; commissioners discussed an immediate $100,000 allocation and longer‑term strategic planning to leverage state/federal funds.
Deschutes County staff and representatives from Neighbor Impact presented the board on June 17 with options for investing proceeds from potential land sales in the Newberry neighborhood to advance groundwater protection in southern Deschutes County.
Background: County staff explained two relevant funds — fund 296 (groundwater partnership funds) and fund 297 (Newberry neighborhood receipts) — and the policy context for using those funds to support septic conversions, rebates and planning. The county has historically used grants, rebates and low‑interest loans to promote advanced treatment system (ATS) conversions in shallow groundwater areas.
Neighbor Impact program status: John Cox, lending director at Neighbor Impact, said the organization's septic program is grant‑funded and operates a revolving loan model and deferred loans for low‑ and moderate‑income homeowners. Cox said the non‑conforming septic fund balance for direct septic work is approximately $18,000 and the organization has about a 63‑person interest/priority list overall, of which seven septic projects are currently in a pipeline for southern Deschutes County. Neighbor Impact estimated roughly $200,000 would be needed to complete the seven immediate septic projects (about $30k per system under current cost assumptions).
Board discussion and proposed steps: Commissioners discussed alternatives — increasing rebates, allocating non‑conforming loans, conducting larger feasibility and planning for community water systems (including consideration of Senate Bill 1154 pathways), and cost‑effective interim measures such as point‑of‑use filters. Several commissioners favored a staged approach: an immediate modest county allocation (staff discussed a possible $100,000 allocation from fund 297 to leverage Neighbor Impact's revolving loan program) and a return to the board with a strategic plan after one or more quadrants of the Newberry neighborhood sell so the exact proceeds are known.
Why it matters: County staff and commissioners emphasized that while rebates and replacement loans help individual homeowners, the scale of the groundwater nitrate problem (long‑standing estimates of thousands of systems in shallow groundwater) requires strategic planning and leveraging state and federal grants to build sewer or community water infrastructure to make broad progress.
Next steps: Staff said they will return promptly with a formal recommendation when sale proceeds are realized; commissioners asked staff to include options for rebate increases, septic loan support, feasibility studies for community water systems, and cost comparisons for point‑of‑use filtration.
