City to implement sewer rate increases
Hey savvy news reader! Thanks for choosing local.
You are now reading
1 of 3 free articles.
Let’s face it, this sewer business simply “stinks” any way you look at it. Exactly two years ago, the City Commission voted to move forward with getting away from using the lagoon sewer treatment system, and stepping into a mechanically driven treatment facility due to many factors. This decision was not taken lightly by the Commissioners, as the financial impact on our community is great. We took about six months to fully determine our direction, and the outcome was the decision to build an SBR system. After some increases in costs from the original projection on this system, the current expected amount is $17.2 million.
First, the good news. The team at the City has been working to apply for as many grant opportunities as possible and to date we have received State grant funding in the amount of $1,725,000. In an effort to “leave no stone left unturned” we have a couple more opportunities that we are continuing to work on. The City is still accepting letters, or citizens can send letters directly to Senators Tester and Daines and U.S. Representative Zinke, in support of WRDA funding for our project. A sample support letter is available on the City’s website on the Water and Sewer page. There are no guarantees, but we are trying to help our community members by increasing our grant funding as much as possible. Additionally, throughout this process the state has changed their funding program and where historically we were restricted to 20 years, we are now able to extend it to 30-year financing. This will help to decrease the monthly financial burden for our citizens.
And now, unfortunately the bad news. While the grant funding and extension in financing term will help, we do need to continue with our anticipated rate increases. On September 3, 2014 when the City Commission implemented the first rate increase, we had decided we would approach this in a stepped process to help the citizens adjust to the changes. This first rate increase went into effect in November 2014, and we are now at the time that we need to move to the next step.
As we are looking at the next two step-up increases, this first increase is expected at approximately $14.09 per month, and the second is expected to be about $9.16 per month. This is based on the “average” residential customer. At this time, the proposal is that the first increase would go into effect beginning in July of this year, and the second step increase would go into effect in the spring of 2018.
The City has recently mailed letters to all sewer customers, which will give each a more specific, individual projection on what they can expect for their own accounts with the next two increases. We understand that this information is complex, so we also offer the opportunity to reach out to our Finance Officer if you have questions or want to go over your information in greater detail.
A Public Hearing is scheduled for June 6, 5:30 pm, at City Hall (106 1st Street East) for all citizens to provide input to the City Commission on the proposed rate increases. We welcome and appreciate your thoughts as we continue to work through this and move forward. The final decision by the City Commission on the next two rate increases is expected to be made at the City Commission meeting on June 20.
On behalf of the entire Commission, I can tell you that this project and particularly the financial implications for our citizens, weighs heavily on us. In 2014 we made the decision to move forward with this system, we have begun the process of getting the site ready, we have ordered the equipment and it is currently being built, and we will be selecting a contractor in the coming months. The whole project is expected to be completed in June of 2018. We believe in the end it is best for our community, but we also know that there are parts that certainly “stink” to have to go through.
