Following some rather unpleasant news, a project in Jefferson will force another short-term increase for residents through a utility user fee.

The wastewater treatment plant improvements were estimated by the city’s engineering firm Bolton and Menk to be $13.6 million and only one bid was received for $17,504,700 by Shank Construction from Brooklyn Park Minnesota, which the City Council approved at their most recent meeting in November. During the discussion with the engineering firm at the City Council meeting about why the bid was so much higher than the cost estimate was partially to do with the increasing costs of materials and availability of contractors with this project being specialized in nature. 

City Administrator Mike Palmer says due to the almost $4 million cost difference, the Council will have to take additional action to cover those expenses at their next meeting in December.

“Essentially the Council at one time had already approved a five-year, 11-percent increase in sewer rates starting next fiscal year (July 1, 2023). That’s going to have to be bumped up from 11-percent to 15-percent. It’s not 15-percent on top of the 11(-percent), it’s just 15-percent. There’ll be a whole fee schedule out there so the users can see what that means to them.”

Palmer adds this project is needed because of the new discharge requirements from the Iowa Department of Natural Resources. Construction could start as early as next year.