Grandview board adopts sewer rate increase, sets new charges effective April 1

The Grandview City Board of Aldermen voted 43 to adopt an ordinance amending sanitary sewer user charges, approving an increase that staff said will reduce—but not eliminate—a roughly $1.1 million annual Sewer Fund deficit.

Staff summarized the financial case for the change, saying a consultant recommended an annual 11% increase for five years. "McClure Engineering did a rate study for the city of Grandview in 2022 and 2023," staff member Kurt told the board, adding that "the recommendation was that the city increase its sanitary sewer rates 11% per year for the next 5 years, which was 2024 through 2028." Kurt said the Sewer Fund currently "has a $1,100,000 annual deficit" and that reserves "have dropped just over $3,000,000 in the past 3 fiscal years." He told the board that a one-year fix would require a roughly 20% increase, while the consultant's recommended 11% would cut the shortfall substantially but not erase it.

Board members pressed staff about alternatives, including smaller increases and bond financing. Staff said a 6% increase would lower the deficit to about $730,000, 11% to roughly $400,000, and a 20% increase would produce a slight surplus. Kurt flagged rising construction inflation: "Since 2021...construction related purchases" have risen substantially, making maintenance more expensive.

City manager-level staff Jamal described how grant and project funding intersects with sewer work. He said the Blue Ridge Boulevard Phase 1 project is about $24 million, with the city contributing roughly $1.7 million and about $22.3 million coming from state, federal and CPKC sources; those infrastructure dollars include sewer construction in the project area. Jamal also told the board that the city will notify residents about any rate change and that "at the end of the day, this is your call. We work for you guys."

A public commenter, resident Joe Runyon, urged aldermen to stop repeated tax increases: "When are we gonna stop raising for our people in Grandview?" he asked during the public-comment period.

Earlier in the process the board discussed a 6% increase announced by the regional Lubu Valley Sewer District, which staff said is only one component of the city's sewer costs. After discussion the board voted to amend the ordinance's effective date from March 1 to April 1 to allow additional notice to residents; that amendment passed on the floor. On the amended second reading the board adopted the ordinance (formerly bill 7887), which was assigned ordinance number 7624.

The final roll-call vote on adoption recorded four ayes and three nays. The ordinance amends ordinance 7561 to change sanitary sewer user charges and sets the effective date for the new charges as April 1. The board did not adopt a larger, one-time increase; members discussed bonds as an option but staff said bonds are more commonly used for treatment-plant work than for line maintenance.

The board and staff said they expect to notify customers in advance of the change and that the average residential customer will see about a $4-per-month increase under the staff estimate for the proposed adjustment. Board members asked staff to continue exploring grants and other revenue options and to return with any additional information on mitigation measures.