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Keokuk council adopts ordinance raising residential sewer rates amid plan to shift debt-service off property tax
Summary
The Keokuk City Council approved the third and final reading of a sewer-rate ordinance that implements an initial 37% residential increase followed by annual 3% increases; officials said the change will move debt-service costs from property taxes to sewer revenue and is meant to allow a cut to the debt service levy.
The Keokuk City Council voted to adopt the third and final reading of an ordinance amending city code section 13.08.0.06 to revise class 2 sewer rates.
Mayor (speaker 1) told the council the rate ordinance “will implement 37% rate increases followed by the annual 3% rate increases with the rate reviews to occur every 2 years for residential customers.” He said the change is intended to shift debt-service payments from the property tax debt-service levy to sewer revenue and estimated the debt-service levy could fall from approximately $7.50 per $1,000 valuation to about $3.00 per $1,000.
City staff and the finance committee recommended approval, citing inflationary pressures and the need to align revenue with sewer-related debt service. After the third reading, the council conducted a roll-call vote; all members present voted in favor and the motion passed.
The ordinance applies the larger initial increase to residential customers and continues a 10% annual increase for large industrial customers, according to the reading presented at the meeting. Council members did not amend the ordinance during the session; the mayor announced the motion passed on a unanimous vote.
The council did not provide an ordinance number in the meeting record. The staff presentation said rate reviews will occur every two years going forward and that the action aims to reduce reliance on the property tax levy for sewer debt service.
