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City staff seek commitment on Macedonia lift station and consultant urges 5% annual water and sewer rate increases

November 25, 2024 | Franklin, Simpson County, Kentucky


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City staff seek commitment on Macedonia lift station and consultant urges 5% annual water and sewer rate increases
City staff asked the Franklin City Commission to authorize the mayor to send a commitment letter so the city would cover the local share of the Macedonia Lift Station project and not lose $222,000 in grant funding. Staff said revised engineering narrowed a worst‑case $1.5 million estimate to an anticipated upgrade of about $500,000; the available grant would cover $222,000 and the city would commit to funding the remaining phase so the application to KIA remains valid.

The commission voted to authorize the mayor to sign the commitment letter. Commissioners and staff discussed the project’s scope — replacing submersible pumps, upgrading to larger pumps and moving critical components above ground to reduce future maintenance downtime — and noted the upgrade would support future growth in nearby subdivisions and commercial areas.

Later, Clark Steves of Strand Associates presented the city’s water and sewer rate study. He outlined 27 water projects (~$7.5 million) and 16 sewer projects (~$9.4 million) over five years and recommended a rate model to keep the utilities solvent, meet a 25% debt coverage covenant and generate surplus to fund capital improvements. Strand proposed a 5% annual increase for water starting Jan. 1 and similar annual increases for sewer (phased so the first increase aligns with the fiscal cycle), projecting a roughly $2/month increase for a typical residential water user (5,000 gallons) and about $1.50/month for sewer after the initial changes. The consultant also recommended phased increases to industrial 'high strength' surcharges to better align charges with treatment costs.

Commissioners said the increases were necessary to keep up with inflation and infrastructure needs; staff asked for two sponsors to carry proposed rate ordinances forward. No final ordinance vote on rates occurred at the meeting — the commission heard the presentation and moved the ordinances to first reading as part of the regular ordinance packet.

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