westfieldvt.com

Wastewater costs: two separate pots

The planning study and a possible village sewer build are different money. Mixing them confuses the conversation. Below: (1) what connected households would pay if Alternative 1 were built with no Vermont grant or principal forgiveness, then (2) what the $125k study actually costs Westfield taxpayers.

Fact labels mark figures from the town FAQ, CWSRF loan papers, or the 90% Preliminary Engineering Report (PER). Opinion marks Corey’s judgment. Counterfactual marks “what if the study loan were not forgiven” arithmetic — not a bill anyone owes.

1. Build without Vermont grant/forgiveness

Fact The 90% PER recommends Alternative 1: gravity collection in the village plus a force main to the existing Troy–Jay wastewater treatment facility. Chapter 6 prices that plant as an ERU user charge on properties in the service area — not a town-wide mill-rate tax — unless voters later put the debt on the general fund.

Fact PER Table 6 · Scenario A (100% loan, 0% grant)

$5,611 / ERU / year ≈ $468 per month · about 6.2% of town MHI ($90,625)

The PER says this is not considered affordable. It concludes that roughly 80–90% grant and/or principal forgiveness would likely be needed before user rates look manageable for Westfield residents.

Verified inputs (Alt 1 · Scenario A)

ItemValueSource
Capital (planning-level)$9,211,032PER §6.2 / Table 6
Annual O&M$54,400PER §6.2
Finance30 yr @ 2.0%CWSRF planning assumptions
Annual debt service$411,272PER Table 6
Total annual cost of service$465,672debt + O&M; Table 6
Total ERUs8359 residential + 24 non-residential
Annual cost per ERU$5,611$465,672 ÷ 83
Monthly cost per ERU$468$5,611 ÷ 12
Town median household income$90,625PER §6.2 (ACS)
Share of MHI≈ 6.2%PER §6.4

Other funding scenarios (same plant)

Scenario Grant $/ERU/yr $/mo % MHI
A – 100% loan0%$5,611$4686.2%
B – 50/5050%$3,133$2613.5%
C – 80% grant80%$1,646$1371.8%
D – 90% (sensitivity)90%$1,150$961.3%

Source: PER Chapter 6, Table 6 — docs/wastewater-study-90/06-user-cost-and-affordability.md

Fact Who pays: under the PER’s design, users in the proposed service area (about 83 ERUs) pay the user charge. The rest of town does not, unless a future vote moves the cost onto the municipal grand list.

Fact A “grant” or principal forgiveness is not free capital. It shifts most of the $9.2M onto a shared federal/state pool (CWSRF forgiveness, USDA RD, CDBG, NBRC) that neighboring towns are also trying to draw from. O&M ($54,400/yr for Alt 1) stays on users either way. See docs/taxes/README.md (“A grant is not free”).

2. Study / due diligence ($125k forgivable loan)

Fact Town FAQ · CWSRF planning loan RF1-386-1.0

Taxpayer cost of the study: $0 $125,000 forgivable planning loan — town FAQ: the Town is not incurring costs for the study

Fact The Selectboard used a Vermont DEC Clean Water State Revolving Fund forgivable planning loan of $125,000 (loan RF1-386-1.0) to pay AES Northeast for the Village Wastewater Study. The town’s published FAQ answers “How much money is this study costing the taxpayers in Town?” with: the loan is forgivable, so the Town is not incurring any costs for the study. Public-meeting minutes likewise record that the $125k study is fully funded and will not cost taxpayers.

Opinion That is a fair (even cheap) price for due diligence before anyone decides whether to build a multi-million-dollar village system. Knowing the numbers — including that a full-loan build would be about 6% of MHI — is itself valuable, and Westfield residents are not paying local taxes for that report.

Counterfactual only: if the $125k were not forgiven

Counterfactual Do not read this as a per-citizen bill or as something anyone owes. If the $125,000 were raised once on the municipal grand list (~$75.8 million listed), the rate would be about $0.165 per $100 of listed value. On a $200,000 listed homestead that is about $330 one-time — not “$330 per citizen.”

AssumptionValue
Study amount$125,000
Municipal grand list (approx.)$75,800,000
Rate per $100 listed≈ $0.165
Example homestead listed value$200,000
One-time tax on that homestead≈ $330

Grand list ≈ $75.8M from docs/taxes/README.md (PVR / municipal levy context). Homestead example matches the tax docs’ average listed homestead (~$201k). Arithmetic: $125,000 ÷ $75,800,000 × 100 ≈ $0.1649 per $100; ($200,000 ÷ 100) × $0.1649 ≈ $329.82 ≈ $330.

Optional secondary $125,000 ÷ 534 residents (2020 Census / PER Table 1) ≈ $234 per person. That is only another way to scale the same counterfactual pile; the study is still forgivable, so actual local taxpayer cost remains $0.

Keep the pots separate

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