Centerville council extends repayment options for drainage audit and sets 50% rate increase effective March 26

The Centerville City Council voted unanimously March 18 to put a previously approved 50% drainage utility rate increase into effect on March 26, 2025, and to authorize staff to extend repayment options for businesses billed under a recent drainage audit.

Council members and staff spent more than two hours on the drainage audit and related billing options after businesses and property owners raised concerns about retroactive bills. Council agreed to extend the application period for previously announced discounts and to offer flexibility for both customers who have not yet paid and those who already paid up front.

The discussion focused on three customer options staff described in the packet: a 15% discount for customers who pay in full by the new delineation date; a 10% discount for customers who enter a 12-month payment plan (with the 12 months counted from the delineation date); and a longer repayment option of up to four years with equal monthly payments and no finance charge but no percentage discount. Council directed staff to set the April 30, 2025, delineation date for the discounts and to allow the 48-month payment plan to be entered into on billing software so payments appear as 48 monthly installments on customers’ bills.

Council members discussed fairness to customers who had already paid under the earlier schedule. “If you get it paid, you can still have the 15% off through April 30,” Council member Gina Hurst said during debate, urging a clear deadline and outreach. Staff agreed to send two separate letters: one to customers who have not paid describing the new options and one to customers who already paid explaining the voluntary option to request a refund and choose a different repayment arrangement.

Staff described the scale of the issue: about 23 accounts (representing roughly eight different owners) were involved in the audit notices, and the remaining unpaid balance was described in the meeting as “just over $119,000.” Officials also noted retroactive billing collected earlier this cycle totaled about $399,000 and that the drainage fund balance stood at about $498,002.76 in the most recent report. Staff and council repeatedly emphasized that the master plan estimates roughly $1.5 million in needed storm-drain capital projects and that the 50% rate increase is only a partial step toward fully funding the program.

Public-works staff and the city attorney warned the council that allowing refunds and new payment plans will require extra administrative work, but they said the city can implement the changes in the billing system. The administrative approach agreed on was to notify everyone who received an original audit letter and allow those who already paid to request a refund and enroll in the 48-month plan by April 30 if they wish.

After extended discussion the council moved to implement the previously adopted increase on March 26 and to direct staff to notify affected customers and implement the extended payment options as described.

What the council decided - Implement the 50% drainage rate increase effective March 26, 2025 (previously approved by council). - Set April 30, 2025, as the delineation date for the 15% pay-in-full discount; the 12-month discount window likewise counts from that date. - Allow customers who already paid to request a refund and instead enroll in a 48-month (monthly) payment plan at 0% interest; those longer plans carry no percentage discount.

The council did not change the 50% increase itself but asked staff to return with any administrative issues and to re-evaluate rate needs during the next budget cycle.

Ending The council emphasized outreach and administration: staff will send two tailored letters to affected accounts explaining the new deadlines and options, and the council said it will revisit longer-term rate adjustments as part of future budget discussions if needed.