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Council delays final action on sewer-rate ordinance after debate over SRF loan timing and public notice
Summary
Ottumwa debated Ordinance 3243 proposing multi-year sewer-rate increases to finance an SRF loan for sewer separation; council members pressed for another public hearing and delayed further readings to the March 18 meeting to allow public input and to clarify loan timing and DNR requirements.
Council considered a correction and re-presentation of a sewer-fee ordinance (Ordinance 3243) that would institute phased rate increases — including 6.5% steps intended to help finance an SRF loan for Phase 3 sewer separation potentially up to $16 million. Staff explained the increases are tied to debt-service needs; they provided example household impacts and said the first increases are required to secure SRF funding.
Several council members expressed concern about waiving additional readings and argued the public should have another opportunity to speak before adopting the ordinance. A roll-call recorded several 'no' votes when members were asked to dispense with further readings; staff and the public works director said delaying a couple weeks would likely not jeopardize SRF funding, but the city’s bond counsel would be the authority on timing. The council agreed to revisit the ordinance at the March 18 meeting, allowing another hearing and additional public comment.
No final rate increases were adopted at the March 4 meeting; staff emphasized the ordinance is necessary to demonstrate capacity for the SRF loan and encouraged continued public engagement on the proposal.
