The city of Auburn wants to increase the amount of money it can spend and borrow on green energy projects. But the citizens have to approve the change before it goes on the books.
City officials are looking to get a public referendum on the November ballot that, if passed, would raise a spending cap currently in place for all public utility projects. The cap has limited spending on energy projects to $2.5 million each for more than a decade.
The proposed changes to the city charter would raise the spending cap to $15 million. There would also be a $10 million cap on bonding for such projects, which means the city would have to find other funding sources for projects exceeding that limit.
The Auburn city council will hear a first reading of the proposal today. The council will also vote on setting a public hearing for the July 9 council meeting.
City Manager Mark Palesh said this week that raising the cap is necessary if the city is serious about getting involved with green energy projects. Solar power, bioenergy, hydropower or wind energy initiatives would cost more than $2.5 million, Palesh said.
As it stands, the city could not initiate public utility projects exceeding that cost, even if they receive outside funding.
“These are the types of projects all citizens should get behind,” Palesh said.
Palesh specifically cited a proposal to build an anaerobic digester that would create natural gas from sludge produced at the waste water treatment plant. The city is seeking grants to help with the cost, but Palesh said the digester would likely cost almost $9 million.
The digester is the second phase of an energy project that will also generate electricity from natural gas at the city landfill.
The generator, which is currently under construction, is being built and will be run by a private company. Energy firm CH-Auburn will turn the generator plant over to the city after 15 years, according to an agreement between the two parties.
The city would have to continue finding private partners for future projects with the $2.5 million cap, Palesh said.
“We'd be limited to doing very, very small green projects,” he said. “It would probably put a damper on us going forward.”
Before the local law can end up on the ballot, the city council must pass a resolution to adopt it. Auburn Corporation Counsel John Rossi said Wednesday that the council will likely vote on the law at the same meeting as the public hearing.
Rossi said city officials are looking to have the bureaucratic steps completed by the end of the month.
“We have to give the Board of Elections enough time to set up the ballot,” he said. “We feel that doing it in July will give them ample opportunity.”
City officials initially proposed the cap be abolished, altogether. But after a number of discussions at city council meetings, councilors requested a higher cap to make sure there are still limits to spending.
Palesh said the $10 million and $15 million figures were reached after receiving input from the Auburn Public Power Authority. And while a new limit would allow the city to spend more money, it still would take a supermajority from the city council to borrow the cash.
“The public needs to be assured there are checks and balances on these projects,” Palesh said.
Staff writer Chris Caskey can be reached at 253-5311 ext. 282 or christopher.caskey@lee.net.
The proposed changes to the city charter would raise the spending cap to $15 million. There would also be a $10 million cap on bonding for such projects, which means the city would have to find other funding sources for projects exceeding that limit.
The Auburn city council will hear a first reading of the proposal today. The council will also vote on setting a public hearing for the July 9 council meeting.
City Manager Mark Palesh said this week that raising the cap is necessary if the city is serious about getting involved with green energy projects. Solar power, bioenergy, hydropower or wind energy initiatives would cost more than $2.5 million, Palesh said.
As it stands, the city could not initiate public utility projects exceeding that cost, even if they receive outside funding.
“These are the types of projects all citizens should get behind,” Palesh said.
Palesh specifically cited a proposal to build an anaerobic digester that would create natural gas from sludge produced at the waste water treatment plant. The city is seeking grants to help with the cost, but Palesh said the digester would likely cost almost $9 million.
The digester is the second phase of an energy project that will also generate electricity from natural gas at the city landfill.
The generator, which is currently under construction, is being built and will be run by a private company. Energy firm CH-Auburn will turn the generator plant over to the city after 15 years, according to an agreement between the two parties.
The city would have to continue finding private partners for future projects with the $2.5 million cap, Palesh said.
“We'd be limited to doing very, very small green projects,” he said. “It would probably put a damper on us going forward.”
Before the local law can end up on the ballot, the city council must pass a resolution to adopt it. Auburn Corporation Counsel John Rossi said Wednesday that the council will likely vote on the law at the same meeting as the public hearing.
Rossi said city officials are looking to have the bureaucratic steps completed by the end of the month.
“We have to give the Board of Elections enough time to set up the ballot,” he said. “We feel that doing it in July will give them ample opportunity.”
City officials initially proposed the cap be abolished, altogether. But after a number of discussions at city council meetings, councilors requested a higher cap to make sure there are still limits to spending.
Palesh said the $10 million and $15 million figures were reached after receiving input from the Auburn Public Power Authority. And while a new limit would allow the city to spend more money, it still would take a supermajority from the city council to borrow the cash.
“The public needs to be assured there are checks and balances on these projects,” Palesh said.
Staff writer Chris Caskey can be reached at 253-5311 ext. 282 or christopher.caskey@lee.net.
