Canandaigua council authorizes $18.9M bond application to support wastewater plant upgrades

Canandaigua’s City Council on July 20 authorized the city to pursue an $18,879,000 bond to finance upgrades to the city’s Water Resource Recovery Facility and to seek state grant funding to cover part of the cost.

The action, introduced by Councilmember Merrill and discussed in the finance committee, authorizes the city to complete design work for biological treatment improvements and to replace aging primary clarifier equipment needed to meet State Pollutant Discharge Elimination System (SPDES) permit requirements. The council carried the bond authorization by roll-call vote.

Why it matters: city officials said the plant needs substantial upgrades to remain in compliance with state permits and to modernize aging equipment. The resolutions also respond to the EPA Lead and Copper Rule Improvements by authorizing an inventory and replacement planning for lead and galvanized service lines and by allowing the city to pursue 100% grant funding through the state Water Infrastructure Improvement Act (WIIA) service-line grant program.

City Manager (City Manager) told the council that grant programs typically cover around 40–60% of eligible project costs and that “if we don't authorize it, then the application might well not be submitted.” He said the city expects to still need approximately $9–10 million in bonding even if some grants are awarded. The manager added that the total capital needs at the facility could reach roughly $65 million over multiple projects and that some components are already beyond useful life.

Councilmembers pressed for additional finance details before any actual bond sale. One councilmember said they were uncomfortable authorizing debt without a fuller finance-committee review; the City Manager agreed to provide a detailed debt report and additional analysis at a future meeting and indicated the city would not issue bonds until after grant decisions and further council consideration.

Timing and next steps: staff said applications for the WIIA and related grant programs are due the week following the meeting and awards are likely to be announced in November or December. The council’s authorization allows staff to apply for grants and to pursue bonding or State Revolving Fund financing as needed; actual bond sales will be contingent on grant outcomes and further council approval.

Funding trade-offs: the manager told the council that if grants fall short the city would need to reduce the project scope, postpone other projects, or consider increased sewer rates to cover debt service. The manager also noted that some municipalities served by the plant (under long-term agreements with Ontario County Sewer District and nearby towns) contribute capital and that sampling is underway to determine loadings and cost responsibility.

The council carried the motion; staff will return with additional fiscal detail and will report back to the finance committee before any bond issuance.