New Iberia officials told the City Council that the municipal sewer system requires substantial repairs and capital projects that will stretch city finances, and they urged a conservative revenue forecast while they pursue funding and contracts.

The mayor and Craig, the city’s sewer director, described multiple large projects under design or construction and flagged rising bid costs. "We have an old system. Our system has issues," Craig said, adding that bids are coming in high and that the city is facing a sequence of costly repairs and capital work. He identified multiple projects by name: Pollard Street (underway), Jean Street pump station ("around 3" million), and work tied to rerouting flows around railroad crossings. Craig said the budget includes $4,200,000 budgeted for sewer user fees.

Council members and staff discussed the utility’s recent history with one-time state funding and a required stabilization rate study. "We got $5,000,000 through water sector. They required us to do a stabilization rate study," the mayor said, and the study showed current rates were insufficient. The mayor said the city returned some state funds rather than spend them in a way that would force a sewer rate increase, and later added the city borrowed to complete needed work: "we borrowed at that, point 9% interest... so we can do the flow reroute." The transcript records attempts to reconcile those funding moves with long-term rate and grant eligibility.

Officials said unanticipated underground conditions are increasing costs on active projects. Craig described a section where initial estimates of limestone fill were dramatically exceeded after crews exposed larger voids: "He calculated the void at 150 instead of the other one was 70 something," which will raise costs on that segment.

The council discussed how sewer user fees are billed (meters and flow meters for parish customers) and how new customers or large industrial accounts could raise collections, but officials stressed they are using conservative assumptions. "I'd rather have a conservative approach… If new businesses come, subdivisions take off, yes, we should get more than this," the mayor said, "but I don't want to fool myself when I'm already running a tight budget."

On operations, Craig said recent equipment failures have hit repair budgets: two outfall pumps required $20,000 each to repair and forced a rented bypass pump. He also said the city will renegotiate the interlocal contract with the parish that shares plant repair costs, and that the Cotton Street plant repairs have responsibilities split with the parish on a percentage basis.

Discussion only: council members pushed for clearer revenue and rate projections and asked about specific line items and flow-billing methods. Direction/next steps: staff said they will continue the current conservative revenue projection, pursue renegotiation of the parish contract, and proceed with design and bidding for identified projects. No formal rate increase or new ordinance was adopted during the meeting.

The sewer discussion was the most time-consuming portion of the budget review, and officials repeatedly warned that project complexity and unknown subsurface conditions will continue to drive costs and schedule changes.