Kingston Springs board approves lagoon liner repair, continues discussion on sewer system sale

The Kingston Springs Board of Commissioners voted Dec. 18 to move forward with repairs to the town’s wastewater lagoon liner, approving a $1.64 million construction contract while continuing to explore the potential sale of the town’s sewer system.

The board unanimously approved a contract to Heron Construction Company for $1,642,000. The project will replace the lagoon’s existing plastic liner and install gas mitigation and ballast systems to prevent future liner failure.

Town officials considered three bid options, including repairing the existing liner, fully replacing it with a plastic liner or removing it and installing a clay liner. The Heron Construction contract was recommended after bids showed it would cost less than repairing the liner and significantly less than installing a clay liner, which carried a price tag of $2.17 million.

Officials said the repairs are necessary to meet state regulatory requirements and must be completed by Aug. 30, 2026 regardless of whether the town ultimately sells the sewer system.

“This is the step we have to take one way or the other,” Vice Mayor Mike Hargis said during the meeting. “We’re basically trying to pick the least worst option.”

With the new debt, sewer customers are expected to see an average $15 increase per month on their bills – the debt assumed by the town is expected to translate to an estimated $8.34 per 1 million dollars for sewer customers. The board emphasized broader concerns about the utility’s long-term financial sustainability and the challenges small systems face without economies of scale.

Following the vote, commissioners continued discussion on a request for proposal to sell the Kingston Springs wastewater system, including a proposal from Central States Water Resources (CSWR). No action was taken.

Board members said they plan to schedule a detailed meeting in January with CSWR representatives to better understand the proposal, including financial terms, debt and liability assumptions, rate impacts and how the system would be managed if sold.

Commissioners also expressed interest in reviewing contracts CSWR holds with other municipalities and subdivision systems, noting that only a small number of those systems may be comparable to Kingston Springs’ utility.

Any potential sale would require a formal contract, board approval and a public input process, officials said.

More than 750 sewer customers depend on the system, and commissioners emphasized the importance of fully understanding the long-term implications before making a decision.