Cottonwood Sewer Connection Fees Could Quadruple Under Proposed $38 Million Plant Expansion, Raising Fears for Local Growth

Troy Bartolomei, Director of Public Works, speaking with Shasta County Supervisors

Cottonwood Sewer Article V2

Redding, CA — April 7, 2026

Shasta County supervisors on Tuesday considered a major overhaul of the Cottonwood sewer system that would nearly quintuple the one-time capital improvement fee for new development, raising it from about $6,279 per household equivalent (HE) to $28,300. The plan also authorizes a roughly $37.9 million (2022 dollars) upgrade to the aging wastewater treatment plant and shifts some future effluent disposal away from Cottonwood Creek.

After a presentation by retiring Director of Public Works Troy Bartolomei and board discussion on potential impacts, supervisors decided to continue the matter for further review in July rather than vote immediately.

The proposal is based on a detailed 2022 Amendment to the 2013 Sewer Master Plan prepared by PACE Engineering. The existing plant serving downtown Cottonwood is already at 77% of its 0.43 million gallons per day design capacity. State regulators have indicated that increased discharges to Cottonwood Creek are unlikely due to limited assimilative capacity for metals such as copper and zinc, combined with declining creek flows.

Engineers evaluated five effluent disposal options for projected growth to ultimate buildout (about 3,137 HEs total, including 1,045 new ones). Using a weighted decision matrix, Option 5—constructed wetlands for flows beyond the current limit—scored highest for cost-effectiveness, permitting, and other factors. The recommended project includes Aero-Mod secondary treatment upgrades, supporting improvements (chlorine contact basin, sludge handling, SCADA, etc.), a 26-acre wetlands facility on a 237-acre site east of Black Lane, plus related pipeline and pump station infrastructure.

The $37.9 million estimate (with 60% contingency) appears reasonable when benchmarked against similar small rural Northern California projects. County staff separated immediate compliance needs from growth-related capacity, and the County is currently pursuing Clean Water State Revolving Fund grants. After an initial ineligibility issue based on 2020 census data, a new income survey confirmed the area as a disadvantaged community, allowing the application to be resubmitted. Grants would primarily target existing system improvements that partially benefit the expansion.

A key flashpoint is the proposed $28,300 upfront “buy-in” fee per new home in this small, historically affordable community of low thousands. Planners note that connection fees above $15,000–$20,000 per unit often make projects unfeasible or push development elsewhere amid high construction costs, interest rates, and delays. Nearby Anderson is tackling infrastructure by increasing sewer rates by 169% over five years, while Red Bluff’s sewer connection fees have historically been far lower (around $2,100), and other small systems typically range from $5,000 to $15,000 per HE. Cottonwood’s figure stands out as high for a rural county service area and could deter housing and commercial growth.

Staff warns that without the fee increase, the county may face a moratorium on new connections once remaining capacity (roughly 300 unused HEs out of an original 1,478) is exhausted. John Heath, Assistant Public Works Director, told Shasta Unfiltered that the fee would apply only to newly subdivided lots without assigned HEs; existing lots generally already have at least one. Owners of lots with more than one HE who don't expect to use the extras can sell and/or assign the extra HEs to others. Heath also stated that it typically takes 7 to 8 years to get through planning and construction for these types of sewer systems. Supervisors and critics, including Board Chair Chris Kelstrom, expressed concern that the hike could “kill” planned developments and further suppress new homebuilding in an area where lower median home prices already limit county property tax revenue. Property tax revenues greatly benefit from new homes added to the tax base.

Supporters view the plan as essential for orderly growth after years of underinvestment in a system originally built to replace failing septic systems. According to RAS, a local septic system contractor, the cost for a new septic system typically ranges between $25,000 - $35,000, including soil testing and permits. The board will hold another public hearing before any final vote on the ordinance. The full PACE report is available at the Public Works office and online. Officials will continue seeking state and federal grants—especially principal forgiveness for disadvantaged communities—to reduce the local burden, though final costs could shift with bids and inflation.

For Cottonwood, the core dilemma remains: invest now through higher development fees or risk a complete halt to growth later. How developers respond and whether grants provide relief will determine whether the fee fairly prices new capacity or simply prices out the future.