5 percent increase coming for sanitary sewer rates

A 5 percent increase to the city’s sanitary sewer rates was approved on Monday by the Newton City Council. The increase goes into effect Aug. 1 and funds produced from the increase will be used to address several capital projects at the water treatment plant.

“Several capital projects are needed to meet Iowa Department of Natural Resources permit requirements,” city administrator Matt Muckler said.

Included in those projects is an estimated $900,000 ultra-violet 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.

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

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