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Rising estimates for sewer treatment plant alarm committee; audits needed to refine financing
Summary
Staff warned that deferred sewer plant upgrades have ballooned in cost (estimates cited from $28M to as much as $63M in different years); members said audits and bond-rating work are urgent to understand likely rate impacts and loan terms.
Committee members and staff discussed a major treatment plant project that will require loan or bond financing and is likely to increase sewer bills once funding is finalized. One member recounted past cost estimates: "We initially wanted to start to do the sewer... We had $28,000,000 We got a grant for 6,000,000, I believe. So we were down to 22,000,000... before we knew it, it was $45,000,000... I think the estimate at that time was like 63,000,000," a committee member said, describing how cost estimates have risen.
Finance staff said audits need to be completed to inform a bond rating and loan assumptions before the city can provide a firm estimate on rate impacts. Staff emphasized that delays and rising construction costs increase interest and overall project costs and recommended early public discussion and outreach once the audits and funding scenarios are available.
