Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Utilities topic
No spam. Unsubscribe anytime.
Commission codifies utility debt-repayment language; city says rates not changing
Summary
The commission passed Ordinance 2025-02 amending the code to clarify that water and wastewater rates may be adjusted to ensure debt service payments if other revenue sources are insufficient; city officials said the change does not raise current rates.
The City Commission of Newberry voted unanimously Feb. 10 to adopt Ordinance 2025-02, amending the municipal code related to repayment of water and wastewater debt and system maintenance.
Why it matters: The ordinance explicitly codifies language already present in the city's loan agreements requiring that utility rates can be adjusted if other revenue sources fail to cover debt service. Staff said the move was requested by the state lender as the city prepares a planned wastewater plant expansion.
City Attorney read the ordinance into the record and framed the motion for a second reading. City staff emphasized the ordinance does not change current customer rates. "We are amending the water and wastewater utility ordinances, but, and the commission knows we're not changing our rates," City Manager Mike Neu said during the presentation.
Staff explained the amendment establishes a sequence of revenue sources for debt service: (1) capital facility and connection fees, (2) developer surety devices where applicable, and (3) water and wastewater utility rates as a last resort. The language mirrors terms used in prior loan agreements with the state's funding agency and is intended to ensure a clear statutory backstop for future bond or loan compliance as the city prepares for an estimated $60 million wastewater plant expansion.
Commissioner Martin and other commissioners questioned impacts on smaller "onesie-twosie" requests for capacity; staff said the city will reserve a percentage of capacity for those smaller connections to avoid locking out infill development.
Action: Commissioner Martin moved approval; Commissioner Clark seconded. The ordinance passed on second reading by unanimous voice vote.
Ending: The measure codifies existing lending conditions into local ordinance language to reduce administrative ambiguity during large infrastructure financing. Staff said no immediate rate change will follow; any future rate adjustments would require separate public action by the commission.
