The wastewater project aims to improve the city’s wastewater treatment facility, addressing the inadequacies of the current system and accommodating the expected population growth.
Whitewood City Council gave the green light to a crucial wastewater project during their Monday night session
The resolution, approved by the council, allows the city to apply for financial assistance of up to $4.15 million to fund the wastewater project. Mayor Mitch Harmon and City Finance Officer Cory Heckenlaible are empowered to take the necessary actions to progress the initiative.
During a public hearing, representatives from the Black Hills Council of Local Governments and Advanced Engineering provided insights into the wastewater project’s scope. Lysann Zeller, a representative from the Council of Local Governments, highlighted that Whitewood’s existing system requires an upgrade since its last improvement in 1992. The current technology cannot meet the state’s proposed effluent limits, and the city’s anticipated population growth will surpass the system’s capacity.
The funding sought by Whitewood aligns with priority level 1 as identified by AE2S. This includes two main improvements: the installation of a lift station to transfer wastewater from the primary treatment process to the oxidation ditch and the acquisition of equipment for a two-channel oxidation ditch.
The total wastewater project cost is estimated at $4.15 million, but regionalization with the neighboring city of Sturgis is also considered, though it comes with a higher cost of approximately $10.5 million
To secure funding, the Council of Local Governments has submitted an application to the state’s Department of Agriculture and Natural Resources, seeking support through a revolving fund program. The application will be reviewed at the Board of Water and Natural Resources meeting in September.
To generate the primary revenue for the wastewater project, a revenue bond will be utilized, with an interest rate of 3.25% for a 30-year term. Zeller mentioned that this might lead to an impact on user rates, with the exact rate adjustments to be determined in September after the funding award is confirmed.
The city council will then make a recommendation on how much rates need to be raised based on the funding award. However, Zeller pointed out that a grant or subsidy recipient must maintain a minimum monthly rate of $45 as per state regulations. Whitewood’s current residential rate is $30 per month, serving 466 sewer users.
AE2S engineer Joe Noble assured that the wastewater project would stay within the existing lagoon’s footprint and that no additional easements or properties would be required. The facility plan, conducted in 2022, projected a cost of $3.75 million, but considering the market rates’ continuous rise, they are seeking the full funding amount to cover engineering, legal, and construction expenses.
READ ALSO: Rents Rise Across The UK As Housing Costs Soar
Leave a Reply