Vermillion council approves wastewater rate increase, multiple leases and permits; reviews airport and sidewalk policies

The Vermillion City Council on April 7 voted to raise wastewater billing rates, adopt several leases and permits, and approve other routine city business as it moved through a full agenda at City Hall.

The council approved a wastewater billing increase that will change the base charge to 170% of the current wastewater billing rate, an average monthly increase of 19.72% (from $43.90 to $52.56 for the average monthly consumption used in the staff calculation). City staff said the increase is needed to meet the adopted budget and develop revenue for a planned renovation of the wastewater treatment plant; the project is estimated at roughly $20 million in construction with about $3 million in engineering and would be financed over 30 years. Staff told the council the city already has a signed Economic Development Administration (EDA) grant agreement that will offset a portion of the cost; bidding and final numbers are expected after an August bid process.

Why it matters: City staff said the rate steps are needed to establish debt service capacity for the plant renovation and to satisfy grant and budget requirements. Councilors asked how the step fits with worst-case scenarios and whether the EDA grant is at risk; staff replied the grant agreement is signed and they are reporting quarterly to EDA.

Other major actions and approvals at the meeting included:

- Airport hangar matters: The council approved a specific hangar lease with Tim Schramm for a 10‑year rate schedule (with renewal options) after discussion about whether previously offered rates should be honored and how future rate changes would apply. Separately staff presented a proposal to standardize airport hangar land rates at 15.15 cents per square foot (staff characterized the number as a flat rate regardless of developed or undeveloped land) and to review rates every five years; the council approved the staff recommendation. City staff said the airport provides amenities (fuel, courtesy car, terminal, on‑site manager) and that lease revenue is currently modest.

- Sidewalk furniture and downtown use permits: The council…