Auburn may require $18M outside funding to join regional sewer

City Council to review draft of deal points at meeting
By: Jon Schultz, Journal Staff Writer
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The Auburn City Council will review a draft of deal points that would be contingent on the city joining a $100 million regional sewer project with the City of Lincoln and Placer County at its regular meeting Monday.

The City Council added several deal points to a list drafted by city staff at its last meeting on Feb. 11, including a stipulation for “financing that would provide for complete rate stabilization for Auburn, which includes no rate increases to the rate payers.”

If the council approves the deal points, they would be sent to the Placer County Board of Supervisors and the City of Lincoln.

The cost for Auburn to buy-in to the project is $36.3 million.

Placer County Supervisor Jack Duran said at the council’s last meeting that the county would be willing to contribute $7 million from its general fund to subsidize the city’s cost of buying into the project.

However, that would still leave a gap of about $11 million in outside financing for the project to keep rates stable at about $726 per year for a typical family, according to an Auburn staff report.

With no outside funding, annual single-family dwelling rates would increase by $180.

Another deal point says the governance agreement for the regional sewer would be “a Joint Powers Agreement with a strong voice and veto powers over any major changes in the by-laws of leadership.”

The draft contains 34 deal points.


Jon Schultz can be reached at Follow him on Twitter @Jon_AJNews