Recent actions by the Jefferson City Council are continuing to line up finances and set a timeline for a multi-million dollar project.

The Council approved at its meeting in December to enter into a loan and disbursement agreement to issue up to $21 million for the wastewater treatment plant improvement project, as well as authorize the state of Iowa to loan the city up to $20 million as a revolving loan fund. City Administrator Mike Palmer says the sale of the bonds will be through the state at a 1.75-percent interest rate over 21 years. Previously, the Council approved Shank Construction as the contractor with their bid of $17.5 million. 

Palmer felt confident about the cost of the project overall.

“And as the (city) attorney (Dave Morain) explained he goes, ‘Just because authorizing up to $21 million, it’s just a credit card limit.’ It’s not to exceed. We don’t have to spend that $21 million but we do want some cushion there in case prices keep increasing like they’ve been.”   

Palmer points out because of the increase in the overall cost of the project, residents’ sewer rates will also need to be adjusted. He says the Council approved the first of three required readings to amend the ordinance to increase the annual rates for the next five fiscal years from 11-percent to 15-percent. The first time the rates are expected to increase is the beginning of the next fiscal year, which is July 1st. You can click the image below to see what the average increase for sewer rates means for certain households and their usage.