With proper maintenance, our current plant can last many more decades
By Dean Silver
I organized the petition drive against Resolution 2024-05 in March. I was shocked that the City Council would authorize up to $75 million of debt at 4.77% for 35 years without referring the question to the people who would be paying — the voters. With the terms presented, that debt could result in over $150 million of total cost with interest.
Then, as now, the petition and the referendum were about one thing only: whether the voters would allow the city to assume that debt in the name of the residents.
The problem is that the proceeds of the line of credit would allow immediate construction of a new $75 million water treatment plant with a solar array and battery storage system. The city made it clear that they would attempt to capture grants if possible, but they were aspirational only at that point, and none have been awarded as yet.
In addition, the city proposed water rate increases of 10% per year for six years. Compounded, that is a 77% increase. That was on top of approximately 60% increases between 2011 and 2021. Those increases were supposed to be used for the new plant that had been discussed since 2012 or before.
Since the original estimate for a new WTP has grown from $22.5 million in 2018 to $32 million in 2019 to $55-75 million in 2024, it is obvious that the project should not proceed without due consideration of viable alternatives. Nothing else has been considered since 2018. Yet the cost of the city’s chosen solution has effectively tripled.
The reason for the referendum is to give the voters an opportunity to decide whether to accept this debt at this time. Despite the city’s claims to the contrary, denying access to this funding source at this time will not prevent us from accessing it or similar programs in the future if it is determined that building a new plant is the best answer.
The city has rightfully argued that the WIFIA line of credit was a good way to finance any new infrastructure program. No one has ever taken issue with that.
The city has claimed that the current WTP is at grave risk of natural disasters and is inadequate to provide reliable water in the future. They have greatly exaggerated the risks. They have no credible evidence, just the specter of low probability natural disasters and the fact that the buildings are 76 years old. People need to realize that the plant consists of the treatment equipment which has been maintained and replaced when necessary, as it would in any water treatment plant, as well as the buildings.
With proper maintenance, our current plant can last many more decades. It has survived three major floods in the past, suffering only minimal disruption even from the 1997 flood that almost destroyed the Plaza.
Meanwhile, we have a backup water source: the Talent-Ashland-Phoenix Intertie (TAP) which can provide all of the household water we need in an emergency.
Over the past seven months, the city has had ample opportunity to provide evidence of their claims, but they have produced nothing but repetitive, empty proclamations.
For the past seven months, I have been investigating the plans for the new WTP, how they came about, and how they might play out. I have been a fact checker on behalf of the residents.
The more I have learned, the more convinced I have become that:
- The current WTP can indeed serve our needs for many more years given proper maintenance and potential upgrades, and
- The plans for the new WTP are fatally flawed from many perspectives, including:
• cost
• impact on the residents’ finances
• energy use during operation
• environmental impacts of construction
• the “waste factor” of abandoning viable infrastructure
Therefore, I can only conclude that a fresh look at our plans is necessary before rushing forward with this project.
I have even presented an alternative plan that would cost the rate payer practically nothing. It is a concept that must be studied and considered. You can find it at ashland-debt.info/a-deal-we-cant-refuse/.
There is no urgency to replace the WTP, as the city has claimed from the start. The funding opportunities are not going away. In fact, they have already improved as a result of the delay. The longer we postpone building a new plant, the more the city will save. Due to inflation, the price of building will increase, along with everything else. But the savings of not having debt service will more than compensate for inflation. Think of how often (and how and why) you buy new cars.
The city must determine how any new project will be financed, and also how it will be paid for before putting it out to bid. It is the law. The line of credit would fulfill the letter of the law, but it would be a complete violation of the spirit of the law.
The city can and must come back with a better plan, because the current plan has become untenable.
The city owes it to the people to give our water needs a new, thorough reevaluation before proceeding. The only way to make that happen is to defeat this funding measure.
There is no question that the decision regarding building a new WTP or maintaining the current plant is complex. There are many moving parts. That is why it is important for every voter to learn about the many aspects of the issue, to really dig in and understand the details.
To get all of the facts so that you can make an informed decision based upon the complex realities instead of fear, please visit ashland-debt.info. If you have the time, read the supporting documents. Get the facts.
And please vote “no” on Measure 15-234.
Ashland resident Dean Silver is director and treasurer of the Don’t Drown Ashland in Debt Political Action Committee.
Related Viewpoint: Protect Ashland’s drinking water; vote ‘yes’ on Measure 15-234
