Resident protests sewer assessment and 8% interest rate; council sends Broken Kettle ordinance to second reading

Sioux City held a public hearing on an ordinance to set sanitary-sewer connection fees for the Broken Kettle Road sewer-extension project, and one nearby property owner urged changes to how assessments and interest are calculated.

Keith Radek, who said he owns 3503 Broken Kettle Road, told the council the project appears to run about 960 feet past his driveway when only about 480 feet would reach the connection point near his home. He argued that he should not be charged for the additional length and called an 8% assessment interest rate "quite steep. It should probably be more like 3." Radek also projected that "in 26 years when the usable life of my septic system is done, My tap fee would be a hundred and $167,001.57," and suggested exploring housing-trust funds to assist low-income residents in the area.

City Engineer Gordon Fair said assessments apply only to properties fronting the project and that properties more than 200 feet from the line are not required to connect and typically are not assessed. Council members pressed staff for a clear explanation of when interest begins accruing on assessments.

A city staff member cited state law and city code, saying "pursuant to law you can charge from the date that the construction is completed but the code says you may charge a reasonable interest rate so it's a may provision not shall," and council requested follow-up clarifications before second reading. The ordinance was not adopted at the meeting and will return for a second reading with staff clarifying the start date for interest accrual and the calculation method.

The council did not vote to adopt the ordinance at this meeting; members asked staff to provide the statutory citation and the details of the assessment calculation at the next consideration.