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Yutan council adopts utility-rate increase to cover SRF loans and create tower maintenance fund
Summary
The Yutan City Council unanimously approved Ordinance 819, increasing utility rates to meet State Revolving Fund loan repayments and a 10% reserve requirement; staff said the change will also create a dedicated infrastructure charge for water-tower maintenance.
The Yutan City Council on March 17 unanimously approved Ordinance 819, a utility-rate adjustment the city says is necessary to cover State Revolving Fund (SRF) loan payments and to meet a state-mandated 10% reserve requirement.
Administrator Oliva told council members the city has two SRF loans (one at 0% interest and another at 0.5%) with repayment terms of roughly 20 to 30 years. He said the water loan carries an approximate annual payment of $23,000 and matures in 2045, while the sewer loan matures in 2053. Oliva said turnover in city administration and disruptions from the COVID-19 pandemic resulted in the statemandated rate increase not being implemented earlier.
Oliva presented revenue estimates based on about 577 service connections, with gross annual revenue projected near $83,000. He said the existing 20% senior-citizen discount reduces expected revenue by roughly $16,000, yielding a projected net revenue near $68,000. He also said the ordinance dedicates an infrastructure charge on utility bills specifically to water-tower maintenance and that the city has a maintenance agreement with Maguire Iron for routine painting and upkeep.
Residents raised questions during a public hearing before the vote. Kevin Bradford asked whether reserve funds could be applied to water-tower costs and requested a dedicated account so the money would not be used for other purposes. Kathleen Slizoske said she has experienced persistently low water pressure at her home; Water Superintendent Woster said he would perform a pressure test.
Councilmember Schimenti, who moved adoption of the ordinance, acknowledged the council had missed implementing a prior rate adjustment and said, "it is not what we want but it has to be done." The motion to approve the third reading of Ordinance 819 was seconded by Councilmember Smith and carried unanimously (Schimenti, Mach, Smith, Lawton).
Ordinance 819 takes effect per the ordinance language; the council did not specify a separate implementation date during the meeting.
