Auburn voters will decide in a week whether to give the city government a bigger spending limit for large power projects.

On the Nov. 3 ballot, a public referendum will ask to raise the amount of money the city can spend on a public utility project from $2.5 million to $15 million. If approved by the public, the proposal also would limit borrowing for each project to $10 million, forcing the city to find other funding if a project exceeds that amount.

The Auburn City Council voted in July to place the referendum on the ballot. The vote came after city officials said the current spending cap makes it virtually impossible for the city to undertake large energy initiatives that incorporate solar power, bioenergy, hydropower or wind energy.

Initially, members of the council wanted to remove the cap altogether. But the current proposal was believed to be more manageable for voters. Though state law says the city can't actively campaign for or against a referendum, Auburn City Manager Mark Palesh said the council's decision to place the item on the ballot shows councilors believe it is a good

proposal.

The types of projects affected by this cap are the types that bring in revenue, Palesh said. A proposed biodigester that would turn solid waste from the sewage plant into methane and compost would generate power that can be sold or used by the city to save costs, he said.

“This is not going to affect taxes, because there is a revenue stream to cover it,” Palesh said. “These are projects that the city should want to be involved in.”

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 of four votes from the city council to borrow the cash.

Estimates for the cost of the digester are as high as $9 million. The project would be the second phase of an energy initiative that includes a power plant that generates electricity and hot water from methane produced at the landfill.

The generator is currently under construction. Because of the spending cap, the city was forced to enter into a private-public partnership under which energy firm C-H Auburn will build the $6.2 million facility.

C-H Auburn will run the plant and sell the energy back to the city at a set rate for 15 years, after which the city will control the operation.

Palesh said C-H Auburn will be a good partner. But if the city is allowed to fund similar projects in the future, there is a better chance for making revenue.

“We're leaving money on the table,” Palesh said.

Staff writer Christopher Caskey can be reached at 253-5311 ext. 282 or christopher.caskey@lee.net.