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DEQ order forces long-term wastewater investment; staff weighing MWMC treatment option
Summary
Staff told the budget committee a Department of Environmental Quality Mutual Agreement and Order requires multi-year wastewater upgrades likely exceeding $50 million. Public Works said outsourcing treatment to MWMC could reduce city capital costs but requires approvals by multiple jurisdictions.
Public Works Director Gary warned the committee that a Mutual Agreement and Order (MAO) from the Department of Environmental Quality will compel Junction City to spend heavily on wastewater improvements over the coming years. "This order is requiring the city to meet certain requirements in its wastewater system moving forward," Gary said, adding that compliance could involve "$50,000,000 plus dollars of infrastructure investment."
Gary explained staff are evaluating alternatives, including joining treatment provided by MWMC. He said the MWMC option could lower the city’s direct capital exposure from an estimated $80 million plant to approximately $50 million and transfer ongoing treatment responsibility to MWMC, but emphasized this pathway requires agreement from Creswell, Eugene, Lane County, and other entities. "All those bodies have to agree," Gary said, noting the intergovernmental approvals and plan changes remain uncertain.
Committee members pressed on timeline and governance. Staff said the MAO-level items will be discussed at upcoming council work sessions and that the budget committee will see continued analysis over multiple meetings. No formal policy decision was made; staff committed to report back with more concrete cost estimates and governance steps.
The committee will consider the MAO-driven capital needs alongside the FY2026–27 budget later in the review process.
