Stanhope approves $600,000 note as officials flag aging sewer and water systems and financial strain

The Stanhope City Council on Aug. 13 adopted Resolution 2024-2025-10 authorizing a $600,000 Taxable General Obligation Corporate Purpose Note to help address municipal needs, council members said. The vote was 3-0.

The financing move came as city and contract staff described deteriorating water and sewer infrastructure. John Horrell of Horrell Environmental Services said the water-plant softener system is roughly 45 years old, meters and gauges are failing and an estimated $35,000 in repairs would improve performance short of wholesale replacement. He also reported lift-station alarms were not working and said repairs are a priority. Horrell said the lagoon is receiving more water than expected and recommended mapping to check for sanitary/storm sewer cross-connections.

Jason Loots with CIT told the council the city’s current contract for sewer cleaning costs about $3,000 per year and recommended expanding to contracted cleaning, mapping, inspection and scanning to identify problems; he estimated roughly $12,000 per year for that work. The council considered the recommendation and tabled further action.

Troy DeJoode of the Iowa Utilities Commission warned the council that Stanhope has experienced inaccurate utility billing for at least a decade, urged the city to stop co-mingling funds immediately, and recommended broad cost-cutting measures. DeJoode said a rate increase is likely and that the GO note is only a first step toward restoring fiscal stability; the utility committee will evaluate and propose a reasonable rate adjustment. He said the commission is available to assist the city.

Council members thanked staff for the updates but did not authorize immediate capital projects beyond the financing step. The council’s next steps include considering CIT’s mapping proposal, prioritizing lift-station alarm repairs, and having the utility committee develop a rate-change proposal.