Wasilla is borrowing $6 million to expand its sewage plant

Wasilla is moving ahead with an upgrade to its wastewater treatment plant that will let it handle more sewage and septic waste — work the city plans to fund largely through a $6 million state loan that ratepayers will ultimately help repay.

The project cleared a routine environmental review this week, with the state finding it won't affect cultural sites, protected species or nearby waters. It will add new equipment — digesters, piping, blowers and dewatering gear — to increase the plant's capacity.

The loan is one piece of the financing. The work is also backed by federal funds the city secured, and it follows a separate $1.5 million state grant for broader Wasilla water and sewer upgrades. How much the plant expansion costs in total isn't spelled out in the state notice.

For residents, the plant is the system that treats the city's sewage, and the borrowing behind its upgrades is the kind of thing that can shape utility rates down the line as the loans are repaid.