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Mound officials present worst-case plan showing water bills would rise whether or not city builds treatment plant
Summary
Deputy City Manager Leila Deaton told the Mound City Council a conservative funding scenario for a water treatment plant would add roughly $13/month for a medium residential user; staff framed the numbers as a worst‑case if no state bonding arrives and said rate increases are needed even without a plant.
Leila Deaton, deputy city manager for the city of Mound, told the City Council the city’s latest utility rate study shows residents will face higher water bills even if the council ultimately declines to build a water treatment plant.
Deaton said the city has been updating a financial management plan and a utility rate study since 2023 at the Public Facilities Authority’s request and that tonight’s presentation was informational rather than a decision point. She said a recent $12,000,000 site-preparation project is under way and fully funded; the remaining construction cost estimate for a water treatment plant is about $30,000,000, producing a $42,000,000 program total.
Why it matters: Deaton said Mound’s water contains high levels of manganese and iron that shorten the life of private plumbing and city infrastructure. The options the council will weigh affect both the long‑term condition of the system and how costs are spread across households, multifamily buildings and commercial users.
Council members asked for assumptions and timing. Deaton presented a conservative scenario that assumes no additional state bonding and models a PFA (Public Facilities Authority) loan of roughly $27,000,000 repaid over 20 years at about 2 percent; she said a longer term or lower interest rate would reduce monthly impacts. "This is the most conservative approach," she said, adding staff is showing the city’s worst-case numbers so residents can see the potential effect.
On household costs, Deaton said the difference between the no‑treatment scenario and the plant scenario is about $98 versus $166 annually for a medium-volume residential user — roughly $8.16/month in the no‑treatment path and about $13.83/month if the treatment plant is built. She broke that $13.83 into roughly $9.83 added to the water bill and about $4 on gas/electric bills through increased franchise fees, and said only a small portion of the franchise-fee increase would directly fund the plant.
Deaton said staff assumes a $3,000,000 PFA grant in the model and emphasized that bids and legislative bonding outcomes could change the numbers. "Even if we don't build a water treatment plant, water bills will need to rise," she said, urging the council to view the presentation as a framing exercise and to prepare communications for residents.
What’s next: Deaton said the city expects clearer bonding guidance by mid‑May and plans to return in July or August with final scenarios and a communication plan. The council did not take any binding action tonight; Deaton said the council will evaluate updated numbers and, if council directs, could go to bid before making a final commitment.
Sources: Presentation to the Mound City Council by Leila Deaton, deputy city manager, utility rate study materials provided to the council.
