Town of Canton
Financial Planning and Rate Analysis for the Future of Canton’s Wastewater
After 115 years, Pactiv Evergreen announced their closure of the Canton paper mill. When operating, the paper mill employed around 1,200 people, which made it the Town’s largest employer and a large part of the Town’s identity. In 1908, the mill installed a whistle that was used to signal when it was time for the workers to break, take a lunch break, or go home. Until the whistle blew for the last time at noon on May 24, 2023, it blew every day. There were many aspects of the mill that made it integral to everyday life for residents in Canton: the whistle, the jobs, the smell of paper being made, and the wastewater treatment.
The mill operated its own wastewater treatment plant to properly manage the discharge generated from paper production. In the 1960’s, the Town of Canton and Champion Paper (the owner at the time), established an agreement that the mill would take in and treat the Town’s wastewater. Canton’s only requirement in this arrangement was to cover the cost of pretreatment process before the flow reached the mill for final processing. With pretreatment being the only cost associated with this arrangement, it served the Canton community well. The mill played a key role in the community’s economic stability by providing jobs and the agreement paved the way for the Town to offer affordable wastewater services.
No one thought the mill would ever close. When Pactiv Evergreen announced their plan and that the closure would take place in three months, many people who had worked at the mill their entire lives were without work and, for some, an idea of what to do next. It’s like when the mining jobs dried up at the hands of mountaintop removal in other mountain communities; people who have formed their identity around a community-centric career suddenly had to shift gears.
The Town also had to shift gears as the leadership is looking for a solution to the wastewater problem. It’s rare for a private company to treat wastewater for a municipality, and since the plant is on private property, the Town doesn’t have easy access to continue pumping the wastewater through that system.
Over the past few months, McGill has been helping Canton navigate a new path forward for its wastewater treatment. As a long-standing client and neighbor to our employees in Western North Carolina, we care deeply about the future of the Town and helping the leadership find a long-term solution.
The Challenge
As Canton figures out the best way to proceed, there are a few crucial questions. Should the Town pursue sewer independence? Should the Town find another buyer and engage in a similar wastewater treatment arrangement? If the Town decides to build a new plant, where should it be located? Can the Town afford to run its own wastewater treatment plant, including the upkeep of maintenance and operations? What option will provide the lowest rate increase? Since the Town has been treating its wastewater at the mill for so long, this closure is forcing leadership to seek answers to questions they never thought they would have, which is where McGill becomes a critical player.
Our Solution
Mark Cathey, Dale Schepers, and Mariah Farris are working toward a solution. They are striving to help Canton find sewer independence so that the Town does not run the risk of having another company control sewer services and end them on a whimsy, which will be better for long-term sustainability. Dale and Mariah have been looking at the quantity of wastewater that’s being processed in comparison to the costs associated with treating that quantity of flow such as chemicals, equipment, operations and maintenance, etc.
With each alternative, they evaluate the revenue requirements needed to run the system and adjust customer rates accordingly. Once the costs and revenue needs of each scenario have been identified, our team presents potential outcomes to the Town staff, who provided guidance on the most feasible option that will support the financial requirements of operating and maintaining a wastewater treatment facility through customer rates. As our team identifies and evaluates different alternatives, we are staying engaged with the Town staff to guide them toward a future they want.
The Results
We are helping Canton navigate the unexpected challenge of the mill closing by identifying alternatives for the Town’s wastewater treatment. We have had multiple client meetings and have been tweaking the rate analysis so that it reflects the Town’s vision. The outcome will be a detailed path to viability. Above all else, we always have the Town’s best interest at heart, and we will do everything we can to help them secure a strong, resilient, and independent wastewater treatment plant.
Our team enjoys helping communities with financial planning and rate analysis. You can read more about our consulting and financial planning services here.
“We are committed to helping Canton find a sustainable solution for wastewater treatment. In the wake of the shock that came from the mill closing, we are showing the Town’s leadership and residents that they have options and that they have a team of folks at McGill who truly want to see their community thrive.”
Mariah Farris, Grants Administrator, is working on this project.
Innovation
Customization
Commitment