The City of Jefferson will move forward with securing a bid on a multi-million dollar project to upgrade one of its utility buildings.

The City Council approved at their most recent meeting a resolution to enter into a sewer revenue loan and disbursement agreement not to exceed $15 million for improvements by the Iowa Department of Natural Resources for new discharge requirements at the wastewater treatment plant. However, after the City published its public hearing notice for the amount not to exceed $15 million, the newest cost estimates had increased to $16.6 million.  

City Administrator Mike Palmer explains why the Council forged ahead with the public hearing for the $15 million limit.

“In asking our financial people about that, they said, ‘Well go ahead and just proceed with the $15 million.’ As prices firm up later on in the project then we will see if we actually have to go out for more (or) maybe zero. Maybe prices have peaked for now and the $15 million will still work. But we haven’t bid it yet, so we don’t know.”   

Palmer adds this project is being paid by the increase in sewer rates as revenue bonds. He says the City can now bid the project, get a contractor in place by November and construction to start this December. According to the timeline with the DNR, the project is anticipated to be completed by June 2024.