Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Wastewater Treatment Plant topic
No spam. Unsubscribe anytime.
Preston council records show $31 sewer-rate increase tied to federally mandated wastewater plant
Summary
Council records and staff reports at the May 12 meeting show a $31 sewer-rate increase to help finance a federally mandated wastewater treatment plant whose costs have climbed well above original estimates; the city says grants and a judicial debt cap are limiting borrowing.
The Preston City Council on May 12 recorded a $31 monthly increase in sewer rates to help finance a federally mandated wastewater treatment plant now under construction.
The increase is intended to pay debt and construction costs for the plant, which city documents show was required by the Environmental Protection Agency. Officials told the council that if the project is not completed and loan repayment deadlines are missed, the city could face heavy fines and the potential loss of local control over the project.
Council materials and discussion noted that early cost estimates for the plant were about $20 million, with an expectation of $5 million to $6 million in grants. Over the past decade those estimates have risen sharply; meeting records state current estimates exceed $70 million. The city reported it has been awarded nearly $36 million in federal and state grants and has engaged state legislators, the U.S. Department of Agriculture and the U.S. Army Corps of Engineers in attempts to reduce the local burden.
To limit borrowing, the city sought and received judicial confirmation of a cap on indebtedness. Presiding Judge Brown confirmed a cap of $34 million on the city's borrowing for the project, according to the meeting record.
City staff and council members framed the rate increase as a necessary step to meet the legal mandate and avoid fines, while acknowledging the financial strain on ratepayers. The council did not vote on further increases at the May 12 meeting; the increase noted in council materials is already in effect per the meeting packet.
What happens next: the council will continue to include the WWTP financing and related grant negotiations in upcoming budget workshops and public meetings.
