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Centerville council sets Sept. 9 hearing on water-rate ordinance tied to $575,000 bond
Summary
The Centerville council moved Ordinance 2025-06 to first reading and set a Sept. 9 public hearing on an ordinance tied to a proposed $575,000 SRF bond that would raise water rates in phased increases to cover added debt service.
The Centerville Talent Council voted to introduce Ordinance 2025-06 on first reading and scheduled a public hearing for Sept. 9 at 7 p.m. on a related rate ordinance the clerk read by title. The ordinance would amend Chapter 52.37 of the Centerville code to update water rates and charges to support additional financing.
The engineer presenting the proposal told the council that contractors had found less lead service line work than expected and the town must use bond proceeds to finish projects. He said the town is seeking roughly $575,000 in additional bonding through SRF and recommended a 35-year financing term to minimize rate impacts. "The assumed interest rate at this point is 3.18%," the engineer said. He estimated the additional annual debt service at about $28,000 and said the water utility needs roughly $1,032,300 in net annual revenue under the current plan, rising to about $1,053,900 after adjustments — leaving an overall gap of about $49,600 to be recovered through rates.
Under the revised phasing described to the council, the change would add an approximate 5% increase in rates related to the phase shown in the ordinance; on a minimum bill the presenter said an increase would be roughly $2.30, with a later phase adding another roughly $2.39. The engineer said S.R.F. asked for rate assurances that would cover through 2027, so the ordinance proposes a fourth phase to extend the rate plan through that year.
Council members moved the ordinance to first reading by title only; the motion was made by Gary and seconded by David and carried on a recorded voice/roll call. The clerk read Ordinance 2025-36 amending Chapter 52.37 and the chair set a public hearing for Sept. 9 at 7 p.m. for public comment and further council action.
The presentation also noted financing alternatives (local bank or state bond bank) that would shorten terms and likely raise rates; the engineer said the longer SRF term keeps customer rates lower. The council did not adopt final rates at the meeting; next steps are the Sept. 9 public hearing and any subsequent council votes.
