Proposed sewer-rate hike and sewer budget falter after council questions costs and resident impact

A proposed multi-year increase to Shepherdsville's wastewater user charges and the sewer department budget both failed after council members raised questions about costs, resident impacts and uncertain revenues.

At second reading, staff presented Ordinance 026018, which would have amended user charges and surcharges for residential and commercial classes with a staged 10% increase in each of three years and additional surcharges for excessive-strength sewage. Consultant Mark (present at the meeting) summarized the project's capital scope and estimated the total project cost at about $25.9 million, including contingencies and engineering.

"I think by the time you include some construction contingencies and the related engineering services, the total project cost is $25.9 million," Mark said.

Council members pressed for the monthly impact on households and alternatives such as increasing tap-on fees for new developments instead of raising existing customers' bills. Staff and the consultant said the recommended increase would amount to a modest dollar increase for most customers (council discussion estimated a few dollars a month; staff said roughly a $3-per-month rise the first year, rising over three years to about $5–$6 total). Council members noted some vulnerable residents could be disproportionately affected.

On the recorded roll call, the ordinance failed (two yes, three no on the recorded tally). Council then considered the sewer operation-and-maintenance budget (Ordinance 026020), which included a major capital line for a wastewater-treatment-plant expansion (the budget listed $15 million for the expansion) and other capital expenses. Council members said they could not responsibly approve the sewer budget without a clear revenue picture; the motion to approve the sewer budget failed. Staff said they will recalculate revenue assumptions, consider alternatives (tap fees, grant funding), and return with revised numbers and necessary ordinance readings.

Why it matters: the sewer utility finances affect planned capital investments and user costs. With the proposed rate increases rejected and the sewer budget not approved, staff will need to reconcile the capital plan and revenue sources before the city can proceed with the expansion as described in the draft budget.

Next steps: city staff and consultants will produce revised revenue and cost analyses and present them at subsequent meetings; council signaled readiness to consider alternatives such as revised tap fees, grant options and phased capital work.