Town Manager Dennis Simmons has provided the below fact sheet on one of Wiscasset's Sept. 1 ballot questions. 

Wastewater (Sewer) Treatment Plant Relocation Bond:

The issue before voters: The Town cannot avoid addressing the existing necessary wastewater treatment plant infrastructure/relocation upgrades. The bond question asks whether Wiscasset should preserve access to favorable financing while it completes the site selection, engineering, permitting, and funding work required to relocate the facility.

Background

Wiscasset must make a long-term decision about the future of its wastewater treatment plant. The existing plant is located on Cow Island in a floodplain area along the Sheepscot River. The Town cannot avoid the underlying problem: the existing facility is aging, vulnerable to coastal flooding, and increasingly difficult to protect and operate over the long term.

The upcoming bond question does not ask voters to approve a particular relocation site or authorize the immediate expenditure of $10 million. It asks voters to authorize the Town to obtain up to $10 million in highly favorable financing through the Maine Municipal Bond Bank and the Clean Water State Revolving Fund. Of that amount, $1 million is expected to be forgiven, leaving no more than $9 million to be repaid if the entire financing package is ultimately used.

Constructing a new wastewater treatment plant in 2026 is estimated, at present, to cost approximately $61 million. This initial funding source will help secure the remaining balance required from otherState and Federal Agencies. We want to minimize the loan obligation required from the Town and maximize the principal forgiveness and/or grant funding.

Why Approval Is Important

1. It preserves $1 million that Wiscasset will not have to repay

The financing package includes $1 million in principal forgiveness. Principal forgiveness functions much like a grant: the Town may receive the benefit of that funding without requiring sewer users and/or taxpayers to repay it, provided the Town complies with the program requirements.

A no vote will place that $1 million at risk. It would not make the relocation project less expensive; it would simply remove one of the outside funding sources available to pay for it. The same work would eventually have to be funded through other grants, other higher-interest-rate borrowing, and/or capital reserves.

2. It secures a substantially below-market interest rate

The anticipated interest rate is approximately 2.5% for a term of up to 30 years. Comparable conventional municipal financing may carry interest rates of 5% or more.

For illustration, financing $9 million over 30 years at 2.5% would produce an annual debt service of approximately $430,000. Financing the same amount at 5% would produce annual debt service of approximately $585,000. That is a difference of roughly $155,000 per year and potentially more than $4.6 million over the life of the financing.

Actual payments will depend on the final amount borrowed, the repayment schedule, and the terms in effect when the loan closes. Nevertheless, the basic point is clear: even a small difference in interest rates becomes very expensive when applied to a multimillion-dollar infrastructure project over several decades.

The Maine Department of Environmental Protection has cautioned that financing on these terms may not be available in the future. Waiting does not guarantee a better offer. It risks replacing today's subsidized financing with tomorrow's market-rate debt.

3. Approval preserves financing without requiring the Town to borrow or spend the full $10 million

The bond question establishes a maximum authorization. It does not require the Town to issue the entire amount immediately, nor does it require the Town to spend the full amount.

The Town may ultimately borrow less if: Additional federal or state grants are received; Congressionally Directed Spending is awarded; the final project scope costs less than anticipated; Engineering identifies a more economical approach; Other funding sources become available; or The Town determines that only part of the authorization is presently needed.

The bond is therefore a financial ceiling, not a spending target. If outside funding reduces the Town's need, the amount borrowed can also be reduced.

4. The financing can help Wiscasset obtain additional grants

Many federal and state infrastructure programs require a local match or evidence that a municipality has the financial capacity to complete a project. The MMBB/CWSRF financing can potentially provide that capacity.

Having an authorized funding source puts Wiscasset in a stronger position when competing for additional assistance. It demonstrates that the Town is prepared to proceed and has a credible way to fund any portion not covered by grants.

Without voter authorization, Wiscasset may have difficulty accepting future awards that require matching funds. Rejecting this financing could not only cost the Town more than the $1 million in principal forgiveness, but it may also weaken the Town's ability to leverage additional outside money.

Any federal appropriation currently being pursued remains competitive and is not guaranteed. It would be financially risky to reject confirmed or allocated financing based solely on the hope that an uncertain grant will later pay for the project.

5. The State has made clear that this funding is for relocation

The Maine DEP has stated that the CWSRF program will support relocating the wastewater treatment plant but will not finance upgrading the plant at its current Cow Island location.The State's position is based on the vulnerability of the existing site, and relocation is a less environmentally damaging and more resilient long-term alternative.

That means this financing cannot simply be redirected toward constructing a seawall or making major permanent improvements at Cow Island. To receive the financial benefits of the program, Wiscasset must continue working toward relocation.

The June 2026 vote rescinding the Public Works site authorization did not eliminate the problem with the current plant. It eliminated that particular relocation plan. The Town must now identify another workable site.

6. Approval keeps the Town's relocation options open

The financing authorization is not a vote to place the plant at Mason Station or at any other particular location. Site selection, engineering, environmental review, permitting, project design, and final cost development remain separate parts of the process.

Approving the bond allows that work to continue with a viable funding source available. Rejecting the bond would restrict the Town's options before the new site and final project scope have been fully developed.

Put simply:

• A yes vote preserves access to the financing while the Town completes the relocation process.

• A no vote does not preserve the status quo indefinitely. It removes favorable financing while leaving the Town responsible for solving the same wastewater problem.

7. There is a firm deadline

Projects receiving a 2025 CWSRF allocation are expected to enter into a loan agreement with the Maine Municipal Bond Bank by September 30, 2026. The Maine DEP's Intended Use Plan states that projects failing to meet that deadline may be bypassed and the assistance offered to another community that is ready to proceed.

This is why voter approval is needed now, even though final construction will occur later. The Town cannot wait until every engineering and site-selection question has been resolved before preserving the financing. By then, the allocation may have been reassigned.

8. Delay is likely to increase costs

Major wastewater projects are affected by construction inflation, equipment costs, labor shortages, environmental requirements, and interest rates. Postponing the work may delay debt payments, but it does not eliminate the eventual cost. It is more likely that delays increase the eventual costs of the selected location. The current escalation factor for cost estimates is an increase of 5% per year.

Meanwhile, the Town must continue maintaining an aging plant at a vulnerable location. Money spent keeping the existing facility operational does not necessarily solve its long-term problems or extend its useful life enough to avoid relocation.

If the Town delays until an emergency, regulatory deadline, or major equipment failure forces action, it could lose the ability to plan carefully, compete for grants, and phase in rate increases. Emergency projects are rarely the economical option.

9. The wastewater system is essential public infrastructure

The treatment plant is not an optional municipal amenity. It is critical infrastructure that protects public health, the Sheepscot River, local business and residential property, and the community's ability to accommodate future development.

A reliable wastewater system is necessary to: Protect water quality and comply with environmental permits; Serve existing homes and businesses; Support economic development; Maintain property values; Accommodate future housing and commercial growth; Avoid sewage releases and environmental violations; and Protect the Town from emergency repairs and enforcement costs.

The condition of the wastewater system affects the entire community. A failing or unreliable system would have economic, environmental, and public-health consequences extending well beyond the customers who receive sewer bills.

What a Yes Vote Means

Authorizes up to $10 million in MMBB/CWSRF financing; Preserves approximately $1 million in principal forgiveness; Secures access to an anticipated 2.5% interest rate for up to 30 years; Allows the Town to meet the September 30, 2026 program deadline; Provides potential matching funds for additional grants; Allows the Town to borrow less if other funding is obtained; Supports continued planning for relocation; and does not select a final site or require the entire amount to be borrowed.

What a No Vote Means

Prevents the Town from completing the MMBB loan agreement under the present authorization; Risks forfeiting the $10 million allocation and $1 million in principal forgiveness; Risks losing access to the subsidized interest rate; Weakens the Town's ability to provide matching funds for other grants; Does not eliminate the need to relocate or otherwise address the plant; Does not guarantee that the existing plant can remain at Cow Island indefinitely; and likely requires the Town to seek more expensive financing later. 

The Central Question

The question before voters is not whether Wiscasset can avoid dealing with the wastewater treatment plant. It cannot. The existing facility's age, location, and vulnerability will still have to be addressed regardless of the referendum's outcome.

The actual question is whether Wiscasset should preserve access to $10 million in subsidized financing - including $1 million that does not have to be repaid - while it completes the planning, site selection, engineering, and funding strategy necessary to relocate the plant.

Bottom line: Approving the bond gives the Town time, flexibility, and financial leverage. Rejecting it gives up those advantages without making the underlying problem go away.