Financing a New Water Treatment Plant to Serve Ashland is Sparking Lively Public Debate on Social Media
ASHLAND, Ore. — The cost of building a new multi-million-dollar water treatment plant in Ashland is sparking heated debate on social media by residents.
The reconstruction of the new plant to serve the Ashland community will cost between $55 to $75 million and ways in which to finance the project was a topic of discussion at the recent City Council meeting.
The Existing Water Treatment Plant is Reaching the End of its Useful Life
The existing water treatment plant was built 76 years ago and is nearing the end of its life. The plant is in a steep and narrow canyon where earthquake, fire, flood, and landslide risks compromise its ability to produce potable water.
At the council meeting, Public Works Director Scott Fleury sketched different financing options, particularly the upcoming ballot measure to issue revenue bonds and needs voter approval.
The revenue bond will carry a 4.2% interest rate over a 30-year term. He said a general obligation bond could be considered and will require the property tax base as a repayment guarantee.
Voters Will Be Asked to Approve EPA Financing Resolution
At the end of March, Ashland City Council approved a resolution for low-cost borrowing from the Environmental Protection Agency (EPA). The EPA assists cities nationwide to access low-cost funding for improvements to water infrastructure and new technologies.
The City Council is seeking voter approval at the upcoming election of Ashland Resolution 2024-05 which will give it the authority to issue water revenue bonds to ‘address crucial water infrastructure needs.’
If most residents oppose the resolution, it will force the City Council to find other finance sources.
Residents Air Their Views
The water treatment plant has sparked lively discussion among residents on the Ashland Community Facebook page.
Larry Cooper is calling on residents not to confuse the water treatment plant with the sewage treatment plant that is not on the ballot. He reminds that water is life and that residents will be voting to finance future drinking water.
Nick Navickas says a new plant means fewer chemicals in drinking water. He points out that the water treatment plant is a 100-year investment and reminds residents that the plant was built in 1948.
Karen Smith says she wishes critics and doubters did their homework and were not so negative about the project.
However, Kristi Chipowsky says $75 million is too much for the project and appeals to the council to be ‘upfront’ and tell residents how much the project will cost them in future years.
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