Portsmouth gets $35M grant, lowering expected sewer rate hikes - Seacoastonline.com
Portsmouth gets $35M grant, lowering expected sewer rate hikes
$35 million grant is why Portsmouth sewer rate hikes will be lower than expected
Jeff McMenemy
PORTSMOUTH — City ratepayers who are paying for the upgraded wastewater treatment plant on Peirce Island— the biggest public project in the city’s history — will see a smaller increase in their sewer bills than originally expected.
Public Works Director Peter Rice said thanks to a roughly $35 million state grant that will be paid to the city over 30 years, the increase in sewer fees — which had been expected to be 6% — likely will be closer to 4% or 4.5%.
“It’s important to realize this isn’t a lump-sum cash payment, this is kind of a reverse mortgage almost, where they give us a portion of the principal and a portion of the interest to offset the overall cost of the treatment plant,” Rice explained during this week’s City Council meeting.
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But in terms of the grant’s impact, Rice said, “Make no bones about it, it is a really great, great thing for us. ... It’s a big deal, and it allows us to be able to look at significant projects coming at us in the next few years and not be really worried about them.”
The $93 million Peirce Island Wastewater Treatment Facility hosted a ribbon-cutting in July 2021.
The project, according to the city’s project page, “significantly increased the level of wastewater treatment provided at the facility, resulting in improved effluent discharged to the Piscataqua River.”
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“The upgrade included the installation of new headworks, rotary screw presses for solids dewatering and an advanced secondary biological treatment process which removes organics and nitrogen,” according to the city.
The monies from the state came from the State Aid Grant Award (SAG), Rice said in a memo he prepared about the topic.
“SAG funds provide financial assistance to New Hampshire communities to offset eligible costs for the engineering and construction of wastewater infrastructure projects … The state reimburses the municipality 20% or 30% of the eligible costs incurred during the design and construction of wastewater facilities, plus a proportionate share of interest on borrowing for the project,” Rice said.
The city applied for the grant in 2022, and in March 2023 was awarded the grant,Rice said.
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