Sewer rate to increase by 5 percent

Newton’s sanitary sewer rates are set to increase by 5 percent next month.

City council approved the increase, which takes effect Dec. 1, on Monday in an effort to keep up with inflation and avoid a large rate increase at a later date.

This is the second year in a row the sewer rates will increase by 5 percent, with funds raised being used for upcoming capital projects and the Inflow and Infiltration (I & I) Program. The I & I Program is a city-wide effort to prevent sanitary sewer overflows and sewer back-ups by eliminating storm water and groundwater from entering the sanitary sewer system.

“These programs, especially the I & I Program, they’ve proved to be well worth the investment versus what we would have had to invest in modifications at the waste water treatment plant,” mayor Mike Hansen said.

To fund the capital project and the I & I Program during the next five years, an annual operating net of $1,082,863 is needed. For fiscal year 2016, the operating net was $833,199. The estimated annual increase in water pollution control revenue following the raised rates is $130,000 with rates projected to increase the same amount over the next two years.

For residents who use less than 200 cubic feet per month, the minimum monthly charge would be $11.35, or an increase of 54 cents. For the average household, who use 600 cubic feet per month, the monthly charge would be $25.92, or an increase of $1.23.

When comparing Newton to other cities in Iowa, the sanitary sewer rates are relatively low for those with a population greater than 10,000. For small water users, or those using less than 600 cubic feet per month, the rate increase would put Newton as the 8th to 12th lowest cost among the 40 cities surveyed. Neighboring cities included in the survey include Ankeny, Pella, Boone, Altoona, Oskaloosa and Marshalltown.

Prior to 2015, the city had not raised rates since 2012. The funds raised will be used for upcoming projects, such as an Ultra-Violet disinfection treatment project, estimated to cost $1.1 million and if possible, the city would prefer to complete it without bonding. More planning and the preliminary design is required to determine if that will be possible.

In other business:

• The landfill concrete crushing project was awarded to Savage Dirt Works LLC of Chariton for $78,125.

• Council approved the lease agreement and accepted ownership of a storage building at the Newton Municipal Airport from Kubal’s Aerial Spray.

• Hansen is currently accepting applications for the community marketing board. Applications can be completed through Friday.

Contact Jamee A. Pierson at 641-792-3121 ext. 6534 or jpierson@newtondailynews.com