Wastewater Matters #3: What the New Wastewater System Will Cost the City

Welcome to the third issue of Wastewater Matters, a series explaining the City of Victor’s wastewater infrastructure project. Each article focuses on one question residents have raised about the project.

Wastewater Investment: What It Costs the City and What It Means for Residents

Wastewater infrastructure is one of the least visible parts of city services, but it is among the most essential. As Victor moves forward with development of a locally controlled wastewater treatment facility, residents understandably want clear information about the financial side of the project.

This article focuses on one question: What will this cost the City?

A second article will explain what the project means for monthly sewer bills and rate structures.

Why This Conversation Is Happening Now

Over the past year, Victor explored whether a renewed regional wastewater partnership could be achieved. After extensive negotiation and mediation, no such agreement is currently available. With state and federal compliance obligations in place, the City is moving forward with development of a locally controlled wastewater treatment facility.

Wastewater infrastructure must be upgraded under any scenario. Regulatory timelines require a clear path forward, and engineering analysis has identified capital needs across the system over the next 5–50 years.

Infrastructure ages. Regulations evolve. Communities must invest in systems that protect water quality, public health, and long-term environmental stewardship.

Moving forward with a locally controlled facility also means local accountability. Victor will own and operate the infrastructure that serves its residents and will be responsible for planning, financing, and maintaining that system over time.

It is also important to understand that capital construction is only part of the total cost of operating a wastewater system. Facilities and pipes represent the upfront investment, but long-term operations, maintenance, staffing, and equipment replacement are equally important parts of providing reliable sewer service.

What “Project Cost” Actually Includes

When residents hear a number associated with a wastewater project, it typically refers to a planning-level capital estimate.

Municipal capital estimates generally include:

• Site acquisition (if applicable)
• Civil construction such as earthwork, tanks, and structures
• Mechanical and electrical systems
• Engineering design and permitting
• Construction management
• Contingency, typically 15–30% at the planning stage

Planning-level estimates include contingency because final construction bids have not yet been received. This is standard municipal practice and helps ensure early estimates are responsibly budgeted.

These early estimates also do not account for future inflation, which will be incorporated as projects move through design, bidding, and financing phases.

Wastewater Infrastructure Includes Two Major Parts

Wastewater systems consist of two major components:

1. The treatment facility
2. The sewer collection system

The sewer collection system includes the underground pipes and lift stations that move wastewater from homes and businesses to the treatment facility.

Over time, maintaining and upgrading the collection system may involve improvements such as:

• Lift station upgrades
• Pipe replacements or upgrades
• Lift station backup systems
• Other system reliability improvements

These types of investments are common for municipal sewer systems and are part of maintaining reliable infrastructure for decades to come.

Current Planning-Level Cost for a Victor Facility

The planning-level estimate for constructing a Victor-owned wastewater treatment facility has been referenced in the mid–$30 million range, including contingency.

This estimate reflects capital construction costs only. It does not include long-term operations and maintenance expenses and does not assume potential grant funding that may reduce the City’s financing needs.

Under this approach, the City would own and operate the facility, giving Victor long-term control over system operations, capital improvements, and regulatory compliance. Ownership also means the City is responsible for managing the infrastructure that protects local water quality and serves the community.

Understanding the Different Numbers You May Have Seen

Residents may have seen several different figures referenced publicly during discussions about wastewater infrastructure. These numbers refer to different parts of the system and different time horizons.

For example:

• A mid–$30 million estimate reflects planning-level construction costs for a Victor-owned treatment facility.
• A long-range Capital Improvement Plan estimate of roughly $30 million over 50 years reflects phased improvements to the sewer collection system under long-term growth assumptions.
• Other figures discussed publicly may refer to individual infrastructure components such as trunkline or pipe upgrades.

These figures describe different elements of the wastewater system, which is why they may appear different depending on the scope being discussed.

What Could Change the Final Cost

Planning-level estimates are an important starting point, but several factors influence the final cost of a project.

These include:

• Competitive construction bids
• Interest rates when financing is secured
• Potential grant or low-interest loan funding
• Final regulatory permit requirements
• Market conditions for labor and materials

As engineering design progresses, estimates become more precise. Final costs are determined after construction bids are received and financing terms are established.

Looking Ahead

Wastewater infrastructure investments are long-term decisions that affect environmental protection, community growth, and fiscal stewardship. By moving forward with a locally controlled treatment facility, Victor is taking responsibility for building and managing the infrastructure that serves its residents.

In the next issue of Wastewater Matters, we will focus on the second key question residents are asking: What does this investment mean for monthly sewer bills and household rates?

That article will explain how sewer rates are calculated and how infrastructure investments are financed over time.

Questions about the project? Visit https://victoridaho.gov/wwtf

This information is provided by the City of Victor as part of the Wastewater Matters Treatment Facility public information series.

New to the conversation? Start here → Read our first article on why Victor is planning for a new wastewater treatment facility and visit the City’s Wastewater Treatment Plant page to review staff reports, technical studies, and additional project information.