$25M in Infrastructure with No Money Down….No Problem!

Creating a brand new $25 million public sewer system with no seed money may sound crazy to most municipal officials, but the Town of Acton, Massachusetts did it and was out of the red within the first few years. Now that Acton is 15 years into the operation of the system, they have eliminated chronic septic system problems, captured targeted economic development, paid off more than half of the 30-year bonds, and built a $1 million sewer surplus. It was not easy. However, other municipalities can succeed as Acton did with the proper strategy, public and commercial support, and a long-term vision. For those communities who did not build sewer systems funded by the Clean Water Act in the late 1970s and 1980s, this success story is a model to approaching funding approvals, cash flow management, public outreach, and sewer capacity management.This presentation focuses on the financial structure and funding strategies that facilitated this massive accomplishment. It teaches practical approaches for any large-scale, multi-phased utility project, and it examines the roadmap and potential pitfalls encountered in this endeavor as well as the public consensus building and communication tactics that can be used to gain the support of local, state, and federal level stakeholders. It describes the critical issues for properly managing appropriations, state loans, and grants, all while managing the natural tensions between preservation and growth. The innovative use of grant funds, which Acton used to bridge required costs that are not typically covered by traditional funding sources, proved essential to the Town’s financial success.By attending this session, participants will understand how to build a multifaceted financial structure for utility capital costs and expansion costs and plan the funding of a fully “user-paid” utility project. In addition, this presentation will share the methods and tactics used to educate local, state, federal, residential, and commercial stakeholders on the challenges, benefits, and strategies of building new infrastructure and starting a new utility in today’s economic and regulatory climate.