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Vermillion council raises sewer billing factor, citing $20.1M plant renovation and borrowing plans
Summary
The council voted to increase the sewer billing multiplier from 170% to 190%, raising the typical monthly sewer charge for an average customer by about $6.19; the adjustment is tied to a multi-year $20.1 million treatment-plant renovation and potential SRF borrowing.
The Vermillion City Council voted April 6 to raise the sewer billing calculation multiplier from 170% to 190%, a change staff said would raise the monthly sewer charge for the typical Vermillion customer (581 cubic feet of water use) by about $6.19.
City staff explained the change was recommended to help fund a $20.1 million renovation of the wastewater treatment plant. Staff noted the city has been approved for a $23.1 million State Revolving Fund (SRF) loan but that the full loan amount may not be drawn; the city also received a $5 million EDA grant to offset costs. "This rate increase before you would take it up $6.19," John (city staff) said, explaining that the average monthly sewer charge for a customer using 581 cubic feet would move from about $52.56 to $58.75 under the new multiplier.
Staff told the council the project construction will run through October 2027 and that, under the current repayment plan if the full loan were used, the multiplier would need to reach about 211% by April 2027. City staff said they are working with SECOG to refine borrowing plans and will present additional mitigation ideas at budget sessions in August and September, including potential use of second-penny funds or other cash to reduce borrowing needs.
Councilors had no visitors to speak on the item and approved the resolution by voice vote. Staff said they will continue to explore other sources of revenue and present options during the upcoming budget cycle.
