2025 06 09 Work Session Packet 1

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Wastewater Division Summary 
 
 
This year’s wastewater budget starts with a huge capital investment plan in excess of $6 
million dollars.  The vast majority of these expenditures will occur in seven line items 
associated with the Oostanaula and North Mouse Creek WWTP plants.   In fact, we are 
estimating the need for almost five million dollars just to address replacement of sludge 
drying/handling equipment at the Oostanaula Plant.  We certainly do not have that level of 
reserve funds available and will need to issue additional debt to replace this equipment.   
 
Highlights of the remaining capital budget include replacing Wheatland Hills pump station for 
$300,000, and a new roof on our Sterling Road pump station for $112,000. 
 
We will continue to evaluate our mini-basins and design projects to further reduce inflow and 
infiltration (I&I) across our collection system to eliminate system overflows and reduce 
treatment costs.  To address these issues, we have budgeted $750,000 for sewer rehab work in 
FY 2026 and we will replace our TV inspection truck chassis.  We have included $250,000 for 
general refurbishment of equipment at both sewer plants and $500,000 for the installation of 
new customer services.  This will be an on-going budget item as these plants are showing their 
age, which is evident in equipment issues and failures.  
 
Vehicle/equipment replacements and expenditures planned for this year in the wastewater 
division are expected to be $225,000. 
 
There is always a level of concern financially for this division given the debt structure as well 
as the need for additional large capital outlays in the future to address I&I.  In order to fund 
these projects, while maintaining the financial stability of the division, we will be required to 
issue bonds or find other funding alternatives to finance longer-lived capital projects and plant 
equipment replacement.     
 
We see no need for a rate increase in the wastewater division in FY 2026.  However, we will 
be re-evaluating our surcharge structure to more align these fees with costs. 
 
 
 
 
 
 
 
 
 
 
 
 
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