LIBERTY – During its recent meeting on February 2, the Town of Liberty reviewed proposed changes to capital sewer rates in the Swan Lake Sewer District as it prepares for the construction of a new wastewater treatment plant, a project that is expected to cost up to $40 million.

According to a report that was prepared by outside consultants and presented to the town board, the Swan Lake Sewer District serves approximately 1,500 people across nearly 300 user accounts and includes about 600 lots overall. 

The district currently collects roughly $136,000 per year in capital fees, a structure that has been in place since 1995. Those fees are based primarily on road frontage and property improvements rather than actual sewer usage.

Town officials say that approach no longer reflects how the system is used. The Swan Lake treatment plant has reached the end of its useful life and no longer meets the Department of Environmental Conservation requirements, exposing the town to potential daily fines. 

Seasonal population spikes, particularly during the summer months, have significantly increased demand on the system and are a major factor driving the need for a larger more modern facility.

The town has secured $10.5 million in grants through state programs and access to $25 million in zero-interest loans over 30 years and continues to pursue additional funding. 

Officials are planning around a projected $15 million loan repayment, which would require increasing annual capital revenue to approximately $500,000, more than triple current levels.

To address this, the report outlines four possible capital rate structures. Several options introduce sewer usage as a new factor in determining capital fees, alongside frontage and improvement units. Usage data was modeled using sewer and water meter readings from recent years, with one usage unit defined as 75,000 gallons.

Of the four scenarios presented, option two was recommended for adoption next year, under the approach 50 percent of capital costs would be allocated based on usage, 37.5 percent on property improvements, and 12.5 percent on frontage.

The report notes that this structure would shift a greater share of costs to properties that contribute most to system demand, while reducing the burden on lots that do not use the sewer system. It also produces the lowest median capital bill among the options considered.

The report further recommends updating the districts’ capital unit records, partially improving units, noting that, “some of the lots in the district have been contributing significantly less towards capital costs than is required, in a system where that cost is directly and immediately assumed by the rest of the lots, verges on stealing. It also sets some of those property owners up for a surprising increase when usage is incorporated into capital rates.”

Town officials are expected to continue reviewing the options as discussions move forward.