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FAQs about the Water Treatment Plant and first phase of construction
Q: Ashland claims to have obtained a $73M loan from WIFIA, which fully funds the new water treatment plant. The plant has been estimated to cost between $55M and $75M. However, WIFIA caps funding at 49%. The numbers do not add up. If $73M is 49% of the cost, then the estimated cost is around $150M. I, and other citizens, would appreciate a more complete explanation of funding. That said, I am fully in favor of the new plant but am troubled by inconsistencies in the funding amounts.
A: The City of Ashland has qualified for the WIFIA (Water Infrastructure Finance and Innovation Act), which funds up to 80% of the project total, under the eligibility guidelines for small communities serving fewer than 25K people. Small communities can then provide the additional 20% through cash or “in-kind” matching funds.
The City of Ashland is contributing in-kind funds based on the land value of the parcel where the future plant will be constructed, as well as previously incurred costs related to preliminary and final engineering work conducted during project development. These matching funds were used by the EPA (Environmental Protection Agency) to calculate the maximum borrowing amount through the WIFIA program, resulting in the noted $73 million figure.
CONSTRUCTION is Underway
Construction on a culvert crossing has closed access across Ashland Creek to the Wonder and Wasabi trails. UPDATES will be posted regularly (follow link below).
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