Buckhannon Water Treatment Plant Project – Frequently Asked Questions (FAQ)

BUCKHANNON, WV: The City of Buckhannon plans to construct a new $33 million water treatment plant and invest an additional $5.5 million in pipeline upgrades. Here are the most common questions that have been asked by the public, and the answers from those involved in the project.

1. What is the Buckhannon water project about?

The City of Buckhannon plans to construct a new $33 million water treatment plant and invest an additional $5.5 million in pipeline upgrades. Add in engineering, property acquisition, financing fees, and project contingencies, the total project cost is estimated to be approximately $47.3 million. This project will continue to ensure clean, reliable water for thousands of homes throughout Buckhannon and much of Upshur County through the Public Service Districts.

2. Why is Buckhannon building a new water plant instead of fixing the old one?

A feasibility study has shown that retrofitting the existing water plant would be more expensive than constructing a new one. The new plant is a long-term investment in infrastructure and public health, including the addition of treatment processes to meet future regulatory water treatment needs.

3. Who is involved in the project?

The project is a collaboration between:

Buckhannon Water Board
Potesta & Associates (engineering)
Steptoe and Johnson (legal)
Smith, Cochran, and Hicks (accounting)
Region VII Planning and Development Council (project administration)

4. How will the project be funded?

All costs related to the proposed water treatment plant and water distribution system improvements must be paid from the water rates collected.For this project, the City plans to apply for grants and borrow the remaining amount from various sources. Here is the breakdown based on our most current information:

$13 million in grants (hard to get approved, but if they are, they will be forgiven)
$34.3 million in loans from the USDA, WV Department of Environmental Protection Fund, and the WV Infrastructure and Jobs Development Council (IJDC) (all must be paid back through water rate collections)

5. Will water rates go up?

Yes. A total increase of approximately 62% is projected, ultimately raising the average monthly water bill from $27.26 to $44.14 (based on 3,400 gallons used a month). This will happen in two to three smaller increases. As loans for the project will be taken out soon, the first small increase is likely to occur by the end of 2025 or in early 2026.

6. Why is a rate increase necessary?

The current rates cover the costs of the Buckhannon Water Department’s current operations. The rate increase is needed not only for the current operations but also for the following:

Repay the loans and interest for the money being borrowed to purchase the necessary land for the plant, pay for the engineering and design services, and the construction of the proposed water treatment plant and water distribution system improvements.
Qualify for state and federal funding, which requires cities to demonstrate local financial commitment

7. When will the rate increase happen?

The increase will likely be phased in over time, in two steps. The first phase could begin within six to eight months to cover interest payments on the Bond Anticipation Note, which is a way to bridge the gap between the need for immediate funds to pay for property acquisition, engineering and design costs, and the expected proceeds from a long-term loan, which will be a 20 to 40 year loan period.

8. Could the rate increase be lower than projected?

Possibly. The final amount depends on:

Interest rates and other terms on loans
How much grant funding is secured

9. How does Buckhannon’s water rate compare to other WV cities?

As of June 2025, Buckhannon is ranked 30th out of 329 water providers in WV, meaning residents currently pay less than 90% of the state.

10. Why is a higher rate required to get funding?

State and federal agencies consider water rates as a percentage of the Median Household Income (MHI). Buckhannon’s rate is currently at 0.77%, far below the 1.25% threshold considered the minimum for funding eligibility. Low rates actually make Buckhannon less competitive for grants and loans.

11. Is this increase permanent?

Yes, the rate increase is intended to support long-term infrastructure investments and operating costs for the new facility. It will become part of the City’s ongoing utility rate structure.

12. Will there be opportunities for public input?

Yes. There will be:

Public meetings
Ordinance readings

Residents will have chances to learn more and provide feedback before final rates are adopted.

13. What’s the timeline for construction?

The design is expected to take approximately two years, with interim financing required beforehand to purchase the property and initiate design work. Construction will commence once the design and funding are in place, with an anticipated start date of September 2027.

14. What is interim financing, and why is it needed?

Before permanent loans and grants are secured, the city will need to borrow from local banks to cover early costs, such as design and property acquisition. These will be short-term, interest-only loans.

15. What official steps has the City taken so far?

Submitted a Rule 42 and project application filing to the West Virginia Infrastructure and Jobs Development Council
Voted to proceed with the project and the necessary rate increase process

16. What happens next?

Interim financing discussions will continue
The rate ordinance will be finalized before any loan closing
Public meetings will occur
Design and planning will begin once interim short term financing is secured

17. Why is this project important?

The current plant is aging. While it continues to produce safe, clean, and reliable water, the cost of repairs is becoming increasingly high and critical plant components are becoming scarce. A new plant ensures Buckhannon will continue its award-winning water service for years to come. It also supports continued growth, economic development, and the promotion of public health in Buckhannon, Upshur County, and portions of Barbour, Harrison, Lewis, Randolph, and Webster counties, whose PSD’s purchase water from the City of Buckhannon Water Treatment Plant.

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