The City of Aumsville has commissioned a rate study to learn how much it may have to charge customers to finance a new sewer plant as the project enters a new design phase.
On Jan. 8 the Aumsville City Council finalized a contract with FCS Group to study whether or not a potential loan package for the $28 million project will require a change in rates.
So far the city has secured $16 million in state and federal grants and is exploring additional options to secure the other $16 million. In December City Administrator Ron Harding said Aumsville may need $11 million in low-interest loans to completely fund the project, the repayment of which would likely require an increase in sewer rates.
Aumsville has been working to replace its sewer plant since 2017 when a report by DEQ found the current facility was unable to meet discharge requirements. To avoid state and federal fines and the potential pollution of Beaver Creek and local groundwater, the city agreed to a compliance timeline that included constructing a new facility.
In addition to analyzing the potential impact of loans, FCS Group will study the city’s current sewer rate structure and policies. It’s estimated the study may take three to six months to complete and the goal is to give city officials “a financial toolset” to take an informed approach to any potential rate increases.
Also on Jan. 8 the council contracted with Westech Engineering to begin drafting final designs for the project, with a deadline of October of 2025. This represents a new phase of the project after initial designs were approved late last year, also completed by Westech.
Final designs will allow the city to seek funds that are reserved for “shovel-ready” projects and could include federal and state grants and loans.
Final designs will also give clearer indications of overall project costs, construction timelines and plant operation costs, which will also impact any decision by the council to change sewer rates.
