City looking to increase sanitary sewer rates by 5 percent

A 5 percent sanitary sewer rate increase is in the works for the citizens of Newton in August.

City council approved the first reading of an ordinance uping rates on Monday with two additional readings needed before the ordinance is adopted.

This is the third rate increase in three years, all 5 percent, for the city. City administrator Matt Muckler said by doing small rate increases periodically, the city can keep up with inflation for plant equipment and avoid a large rate increase at a later date.

“Currently Newton sanitary sewer rates are relatively low compared to cities in Iowa with a population greater than 10,000,” Muckler said. “For small water users (less than 600 cubic feet per month), the rate increase would position Newton as the 11th to 15th lowest cost among the 40 cities surveyed. The proposed Newton rate would be near the median rate for water use more than 10,000 cubic feet per month.”

Neighboring cities included in the survey were Ankeny, Pella, Boone, Altoona, Oskaloosa and Marshalltown with Newton having rates lower all of the cities listed in the 200, 600 and 1,000 cubic feet used per month categories.

For citizens, those with low water usage, less than 200 cubic feet per month, would see a minimum monthly charge of $11.92 or an increase of 57 cents per month. Those with an average household water use, 600 cubic feet per month, would have a monthly charge of $27.21 or an increase of $1.29 per month.

The increase rate is proposed, in part, to help fund several capital projects at the water treatment plant required by the Iowa Department of Natural Resources. Among those projects is an estimated $900,000 ultra-violet (UV) disinfection treatment project at the plant. The project will be bid later this year and preliminary estimates indicate it can be financed using WPC funds. It is the city’s preference to go that route versus bonding for the project.

Additional funds from the rate increase will also be used to continue funding 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.

“We’ve been trying to keep our rates low but yet we want to continue make improvements in our systems so it doesn’t come as a big shock in the future when we have to do a lot of upgrades,” public works director Keith Laube said. “We’ve been doing upgrades as we go and adjusting accordingly.”

The department is in need of an annual operating net of $942,792 for the next five years to fund capital project, the I & I Program and service past debt. The operating net for fiscal year 2016 was $833,100.

“I commend the water department for doing that because it is a topic of great concern for cities at the League of Cities meeting. Everyone in Iowa needs to address these increasingly more strict standards for water,” councilwoman Evelyn George said.

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