Graham Plans $35 Million Rehab Of Sewer Plant

Graham is preparing for an estimated $35.19 million rehabilitation of its 48-year-old wastewater treatment plant, a multiyear project that will drive higher sewer bills for city customers.

City Manager Eric Garretty outlined the project during his July 23 presentation of Graham’s proposed fiscal year 2027 budget and updated capital improvement plan.

The city expects to spend approximately $2.5 million on engineering and design during the coming fiscal year. Construction of the first phase is currently estimated at $9.5 million, bringing the total estimated cost of Phase One to approximately $12 million.

The second and third phases are estimated to cost a combined $24 million.

Mr. Garretty said rehabilitation of the wastewater plant is necessary to maintain essential services and protect Graham and the surrounding area.

The city already has approved a $17.25 monthly capital surcharge on sewer customers to generate revenue for debt payments associated with the project. The proposed budget also incorporates a 3 percent increase in sewer base and usage rates and a 7 percent water-rate increase.

Graham’s water and sewer departments are expected to spend more than $8.6 million during fiscal year 2027 on maintenance, supplies, services and debt payments involving the city’s water- storage and distribution systems, sewer lines and treatment facilities.

The city also is considering a less expensive approach to a separate water-reuse project.

Graham had pursued grant funding for a project that would allow treated or nonpotable water to be reused instead of drawing additional water from Lake Graham. After the anticipated grant did not materialize, Mr. Garretty placed $125,000 in the current budget to begin developing an alternative.

He said he expects to present the alternative to the City Council in August.

The city already reuses some water produced during its water-treatment process. Public Works Director Randall Dawson said improvements by city employees, engineers and local contractors have allowed water that otherwise would be directed to lagoons to be recovered.

The system can conserve approximately 400,000 to 500,000 gallons on some summer days, according to the discussion. The wastewater project also could become a factor in Graham’s negotiations over Project Saltworks. The city has discussed providing access to its sewer system and potentially supplying nonpotable water for the proposed Stream Data Centers campus.

The City Council is expected to consider an engineering contract defining the scope of Phase One at an upcoming meeting.

The proposed fiscal year 2027 budget is scheduled for a public hearing at 6 p.m. Aug. 13. Final adoption is expected Sept. 17.