The City of Jefferson is looking to set itself up to have to pay more toward a required upgrade of one of its facilities.

The wastewater treatment plant will need to undergo a $15 million improvement to adhere to the new discharge requirements from the Iowa Department of Natural Resources. City Administrator Mike Palmer says because of the increased estimated cost, the Council approved the first reading to amend the ordinance to raise sewer rates up to 11-percent starting the next fiscal year on July 1, 2023. 

“I guess that’s good news and bad news on it. The bad news we do have to raise rates in order to cover what we’re required to do. If there’s any good news out of it is that because the city has kept up with their rates over the years or at least doing steady increases, the increase (for next fiscal year) isn’t near as much.”  

The sewer rates were increased for the current fiscal year to 5.5-percent. The Council will need to approve two more required readings before the new rate of 11-percent can go into effect. The plan outlines two more possible years of 11-percent, before it drops back to nine-percent the final two years of the five year rate increase. 

The Council also set August 23rd at 5:30pm for a public hearing for the 2022 sewer revenue bonds, and Palmer explains what will take place.  

“What’s unique about when we do something like this, this is strictly tied to the rates. That’s why the rates go up. The sewer (rates) are separate from property taxes rates. So it’s just paid for by the users on the system. So there will be no effect on property tax rates.”    

Palmer points out that they are looking to secure a 20 year bond with a 1.75-percent interest rate through the state revolving loan fund to pay for the project.