AUBURN — Losing Cascades Auburn Fiber’s recycled paper processing plant not only costs the city jobs but could also mean higher sewer rates.
Sid Hazelton, superintendent for the Auburn Sewer District, said the Auburn Sewer District looks to lose as much as $500,000 in revenue after the Cascades Inc. plant closes on Friday.
“There is some anxiety on what this is going to mean,” Hazelton said. “When you lose a large customer, there are going to be questions about how it’s going to impact your budget.”
Hazelton is scheduled to meet with Auburn city councilors at 5:30 p.m. Monday to report on the potential impact the mill’s closing will have on the Auburn Water and Sewer districts. The discussion will be part of the City Council’s workshop meeting, he said.
“We are going there for kind of a joint meeting of our trustees and the City Council to discuss the impacts of losing such a large industrial customer,” Hazelton said.
The Auburn plant on Lewiston Junction Road, just west of the Auburn-Lewiston Municipal Airport, has long been one of the sewer district’s biggest customers, responsible for roughly one-eighth of the district’s annual revenues.
Cascades Inc. announced in June it planned to close the Auburn operation in July, citing a failing market for its printing and writing paper market and its de-inked paper pulp.
The Auburn mill, which employed 45 people, made green packaging and tissue paper products.
Hugo D’Amours, vice president of communications for Cascades Inc., confirmed that the Auburn plant ceased operations on July 8 and will close its doors for good Friday. D’Amours said half of the Auburn plant’s employees have found other jobs within the company. At least 10 employees will stay to help close up the mill.
“They will be working to finish the secure and environmental closing of the mill,” D’Amours said. “They’ll be working as long as needed to ensure that.”
Residential sewer customers pay a minimum of $47.16 per quarter, plus $3.16 for 748 gallons.
Hazelton said the Sewer District has not calculated what the looming revenue reduction will mean for the budget or for sewer rates. Ratepayers will not see changes until 2017.
“We are driven by the revenues we collect from our users so when there is an impact like this, there is only so much we can do,” Hazelton said. “There are operation costs to look at, there are equipment purchases and capital projects. And then there are the rates. Those are the four things we can consider.”
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