Vote no on Wiscasset’s sewer plant move bond
Testimony for the public hearing on the upcoming referendum, Article 3, of the Sept. 3, 2026 special town meeting.
Approval of Article 3, as written, authorizes the Selectboard to borrow $10 million from the CLEAN WATER STATE REVOLVING FUND (CWSRF). At the July 7, 2026 Selectboard meeting, the Board voted 5 - 0 to accept the conditions of that fund. One absolute condition of the fund is it can be used only for relocation of the plant. A yes vote on Article 3 commits the town of Wiscasset to relocate the plant, and authorizes the Selectboard to borrow such additional funds (beyond the $10 million and any grants obtained) as necessary to accomplish the relocation. To date, the only grant identified is the $1 million possible "forgiveness" from the (CWSRF). It is unclear if that $1 million "forgiveness" is deducted from the $10 million initially, or from the $14,224,352.36 total principal plus interest payback (assuming a 30-year loan).
For the purpose of this exercise, let's assume the relocation is to Mason Station, and use the previously indicated $65 million estimated cost. Absent grants, the remaining borrowing would be $55 million, again for 30 years, at the standard 5% interest, for a total payback of $106,290,681.36. Combine the payback for both, and this vote commits the town of Wiscasset to $120,515,033.36 of debt. Payments on these loans would add slightly over $4 million to the town’s budget, annually, for the next 30 years. Grants may be found, interest rates may vary, but these figures identify the financial neighborhood Article 3 puts us in, less the $1 million "forgiveness" from this $120 million, 30-year commitment.
Notice of this hearing stated Article 3 could not be changed. So it is a Yes or No decision.
I have read (most) of the Climate Adoption Plan submitted by Olver Associates dated July 2022, particularly with respect to upgrade and resiliency of the wastewater plant at the current location. Estimates to accomplish these actions, in 2022 dollars, was $14 million for the upgrades, and $7 million for resiliency (mitigation) These actions would secure the plant at the existing location through 2045, and to 2070 with normally expected component replacement due to equipment wear and tear over the period 2045 to 2070.
To compare apples to apples, we must apply the 35% increase in cost due to inflation and construction price increases between 2022 ($21 million) and 2026. This results in an estimated cost of $28.3 million to address this issue through 2070. This cost, borrowed at 5% interest over 30 years results in a total payback of $55,228,668.38, or $1,840,955.61 annual payments for 30 years. The upgrades and mitigation as outlined by Oliver Associates covers the worst possible climate conditions that may be expected through 2070.
The Selectboard has the Olver Associates report. The total pay back costs, although subject to minor tweaking, tell the story. It would appear there are $65 million good reasons to keep the plant right where it is. It also appears a deep dive into the regulatory weeds attached to the CWSRF proffered loan is in order.
From whence came the belief that the Maine Department of Environmental protection would not approve plant improvements and environmental mitigation measures at the current site? That deep dive is necessary. Failure to do so is negligent failure of due diligence.
The true bottom line is we could spend $2 to $3 million right now for a sea wall that would prevent overtopping of the facility in the event of a 100-year storm, which is the immediate concern. I understand that due to the resourcefulness of the plant operator, and sandbags, overtopping was recently avoided (just barely) during what has been described as the worst storm we have had in over 100 years.
The Olver Associates 2022 report also includes, with cost estimates, a number of issues related to the sanitary collection system that need attention due to operational as well as climate change deficiencies.
I intend to vote No on Article 3, and encourage others to do the same. Rejection of this article would be a mandate for the Selectboard to reject the CWSRF loan, to reject the relocation of the wastewater treatment plant, and to immediately resume work with Olver Associates to commence the implementation of their recommendations, on a priority schedule, tempered with the reality of immediate need and total cost. Due diligence on the regulatory front would also be part of this mandate.
