Headworks Bond FAQ
What is this bond about?
A ballot measure in May will ask Hailey voters if they wish to borrow $6 million to be repaid over 20 years to upgrade the aging Headworks at the Wastewater Treatment Plant. The overall structure of the Headworks is greatly aged and has gone past its expected life after 22 years of service. No major changes or upgrades have been made to this structure or the equipment inside since the plant was built in 2000. It is a tough environment which causes aggressive deterioration of any material, but it plays a very vital role in the overall treatment process.
If passed, how will the bond be paid for?
The proposed revenue bond, if passed by a 50% majority voters, will be funded by revenues from the Hailey Wastewater System. An increase in monthly charges to the wastewater ratepayers would be needed to cover the $6 million bond. The payment options are contained below. The City Council will decide if the bond measure passes, and with public input, as to whether the rate will be charged as a flat rate to users by month or charged based on gallons of water used. Payments on the proposed bond will be minimized until the City’s existing bond is paid off.
$6 MILLION BOND AGING HEADWORKS PROJECT RATE INCREASE COMPARISONS:
| Term | Annual Bond Payment Increase | Monthly Revenue Necessary | Option 1: Increased Monthly Fixed Base Fee | Option 2: Increased Cost in $/1K gallons | Option 2: Monthly cost on 5k gallons of usage |
| 20-year Bond | $298,500 | $24,875 | $7.65 | $1.66 | $8.29 |
Tell me more about how the Headworks operates?
For many Hailey citizens, wastewater is “out of sight, out of mind.” Not so for the Hailey Wastewater Division - this team makes sure that pollutants such as nitrogen, phosphorus, dissolved chemicals, and solids are removed from the water and disposed of responsibly. Treating wastewater is incredibly hard on equipment. The gritty, aggressive nature of raw sewage causes rapid aging of wastewater infrastructure. Hailey is approaching the end of the expected life cycle of much of the wastewater treatment infrastructure. Consistent and efficient headworks operation is critical to the operation of the overall treatment process. Failure of headworks equipment to adequately screen at the front end of the process will result in more expensive & frequent damage to downstream processes, potentially resulting in permitting violations for our discharge to the Big Wood River.