Bond Vote & Ballot Details

The ballot asks if voters will allow the Selectboard to pursue the $15 million in grants and loans necessary to proceed with final design and construction of the proposed wastewater project.

As proposed, the Selectboard plans for no impact to the Waitsfield municipal tax rate. The upfront cost of the system will be covered by grants and loans. Ongoing operating costs and loan repayments will be covered by usage fees paid by connecting users. The only cost to taxpayers will be to cover wastewater user fees for public buildings within the proposed service area, which include the Waitsfield Town Office, General Wait House, and a portion of the Joslin Memorial Library & Waitsfield-Fayston Fire Department. This is the same as the operation of the water system.

The engineer’s Opinion of Total Project Capital Cost for the proposed wastewater project is approximately $15 million. The town is seeking 100% project funding through federal and state grants and loans, with no taxpayer impact beyond user fees paid by municipal properties that connect to the system.

The estimated project cost of $15 million includes final project design, construction engineering, site work and construction associated with the treatment and disposal system located at the Munn Site, remaining permitting work, administration costs, legal and financing costs, contingencies, and reserve funds for equipment replacement. The total project cost also includes the cost to connect priority users to the system.

The town has identified over $13 million in federal and state grants through the VT Clean Water State Revolving Fund, USDA Rural Development (RD), Congressional Discretionary Spending, and other sources. A federal low-interest USDA RD loan is identified for the remaining $1.7 million, with the debt to be paid back via affordable user fees paid by the homes and businesses that connect to the system. This funding model would allow the Town to build and operate the proposed wastewater system at no cost to Waitsfield taxpayers, same as the existing municipal water system. The water system has been in operation for over a decade. Over that time, user fees have dropped by 30% as more users connect to the system.

First, the ballot language is dictated by state statute. The ballot language must include the full project cost, in this case $15 million, before stating that the cost can then be offset by grants. Second, the funding agencies require us to state the full project cost in order to demonstrate public support.

While the ballot includes the full project cost, the Town and Selectboard understand that the project is not economically viable without grants to cover the majority of the cost. If the Town cannot secure enough grant funding, the Selectboard would not move forward with the project.

The Selectboard adopted a statement of intent on May 13th that outlines the conditions under which they would proceed with funding the proposed wastewater project. As adopted, the resolution states, “The Board’s intent is to fund the majority of the wastewater project cost with federal and state grant funds, and to use monthly user fees for operating costs as well as the source for making payments on any loan amount that is determined to be necessary and reasonable for success of the system.”

Construction of the Waitsfield municipal water system was funded entirely through grants and loans. Homes and businesses that connect to the water system pay user fees, and those user fees cover the ongoing operating costs of the system as well as repayment of the loans. The Town intends to use the same funding model for the wastewater project, and has identified grants and loans to fund 100% of its estimated cost. The water system has been in operation for over a decade, and over that time, user fees have dropped by 30% as more users connect to the system. The water system’s success demonstrates the Town’s ability to effectively manage large infrastructure and utility projects.

The Town has a narrow window of opportunity to secure the grants and loans to fund 100% of the project cost. Many of these grants and loans will be awarded in August/September, and their award is contingent upon a positive bond vote. If we wait until November for the bond vote, we will be too late to secure these funds and will miss out on this rare opportunity. The time to act is now.

If the bond vote does not pass, the Town would miss out entirely on ~$6 million in ARPA funding. This is non-recurring funding tied to the pandemic, and will not be available again. If the bond vote does not pass and we miss out on this funding, the Selectboard and wastewater project team would pause work on the project, try to identify additional funding sources, and then schedule a revote. Again, the Town has a rare but narrow opportunity to secure the funding needed to make this project affordable for both the users and the taxpayers. The path to affordability starts with a positive bond vote.

If the bond vote passes, the wastewater project team will immediately follow up with a number of funding partners to update them on our eligibility status. If fully funded as proposed, the wastewater project team anticipates starting the design and permitting phase later this year, with construction projected to begin in the second half of 2025. The project is expected to be completed and operational by the end of 2026.

• A Bond Vote Information Meeting will be held on Monday, June 3rd at 6pm at the Waitsfield Town Office with remote access available via Zoom. The agenda and Zoom link will be available here before the meeting.
• Additionally, please consider joining us at one of four Coffee Hour Open Houses at Three Mountain Cafe, from 10:30am to 12:00pm on Friday, May 17th, May 24th, May 31st, or June 7th. A member of the wastewater project team will be there to discuss the project and answer any questions you might have!
• A complete overview of the project history, the proposed system, proposed funding stack, and more details on the bond vote was provided at the Community Meeting on May 8th. A recording of that meeting and copy of the slide presentation can be found here.