Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Sewer Rates topic
No spam. Unsubscribe anytime.
Keiser weighs sewer-rate hikes to qualify for ANRC loan forgiveness
Summary
City leaders discussed applying for an ANRC sewer loan and outlined rate-increase options to meet a 1.25% median-household-income threshold; staff said a 4,000-gallon bill would need to be roughly $38.50 (currently $19.23) and any rate change must be in place by Sept. 1, 2024 to qualify.
Keiser officials reviewed sewer funding options and a potential rate increase at the July 15 council meeting as they prepare an ANRC loan application due Sept. 6, 2024.
City staff said the plan is to reapply for ANRC assistance and use about $550,000 of an available $4.6 million loan. Officials reported an approximate monthly loan payment of $4,820 based on the proposed financing. To qualify for potential loan forgiveness, staff said sewer rates must equal 1.25% of the city's three-year median household income (MHI), which the city reported as $36,851. That calculation yields a target sewer charge of about $38.50 for a 4,000-gallon usage level; the city currently charges an estimated $19.23 for 4,000 gallons.
Council reviewed three revenue scenarios presented by Mayor Rick Creecy showing monthly revenues estimated at $30,000, $31,000 and $29,000 compared with current monthly sewer revenue of about $22,700. Officials said a rate increase would need to be adopted in time to be effective by Sept. 1, 2024 to meet loan program requirements.
Council members did not adopt a new rate at the meeting; they discussed options and asked staff to develop specific rate proposals and timelines for consideration at upcoming meetings.
