Council delays wastewater rate ordinance after $500,000 funding gap in Burke agreement

Nevada City Council members on Tuesday delayed action on a proposed wastewater-rate ordinance after staff reported a roughly $500,000 difference between the city’s and Burke’s draft contributions to a discharge agreement, a gap that yields two distinct customer-rate scenarios.

City staff presented the figures and said the difference would change monthly sewer bills for typical residential users by several dollars. The council voted to table the ordinance to the next meeting so staff can finalize numbers and distribute more information to residents.

The issue matters because the council plans to fund wastewater infrastructure through a combination of partner payments and State Revolving Fund (SRF) financing; staff said the final Burke payment amount affects monthly rates. Gordon (staff member) told the council “there is a slight difference. It's about $500,000 in difference, so we're working through that.” Staff said the ordinance was pulled from tonight’s vote to allow broader public outreach before a first reading at the following meeting.

Staff outlined two rate scenarios tied to the unresolved Burke contribution. Under the higher-contribution scenario staff shared, customers using 2,000 gallons per month would see a $3.75 monthly increase to their combined water and sewer bill; under the lower-contribution scenario that 2,000-gallon user would see a $5.45 increase. Staff gave examples across usage tiers: for 5,000 gallons, increases would be about $9.90 (higher-contribution scenario) or $11.90 (lower); for 10,000 gallons about $20.15 or $22.65; and for 18,000 gallons about $36.55 or $39.85. Staff said the average residential use in Nevada is about 2,500 gallons, which translates to roughly a $4–$7 monthly increase depending on the final scenario.

City staff said these examples reflect the total-bill change, not just a per-gallon rate change, and that the published examples include base fees, debt service and operating-and-maintenance components. The staff presentation also noted a separate flat fee implemented in recent months would be replaced (from $10 to $8.90) as part of the new structure.

Councilmembers asked about public outreach and tools for residents to estimate their new bills. Staff said they will post information on social media, can provide ad hoc bill estimates if residents contact the utility clerk, and discussed options for a web calculator but said that would require vendor work. Don Dee Rouse (utility clerk) was identified as the staff person residents should contact for individual calculations.

Councilmember Jordan moved and the council approved a motion to table the ordinance until the next meeting to allow staff to finalize numbers and expand outreach; the motion carried by voice vote. Staff said the ordinance is expected to return for a first reading at the next meeting.

The fiscal mechanics also tie to SRF-funded construction. Staff noted that the SRF program requires coverage of 110% of annual revenue obligations for loan eligibility; the council’s choice of Burke payment timing (lump sum versus monthly installments over 20–30 years) changes interest and long-term receipts. Gordon said the monthly payment option will yield more total dollars over the repayment period because of interest accrual.

Staff outlined communications plans including additional social-media posts, magazine mention, and the option of a mailed flyer. Councilmembers suggested staff provide per-thousand-gallon breakouts so residents with nonstandard usage can estimate impacts.

The council did not adopt any rate changes tonight; the item was tabled pending settlement of the Burke contribution and additional public outreach.