Council notes wastewater treatment bid overruns; approves related fee increases enacted earlier

City staff outlined cost pressures tied to the new wastewater treatment plant, reporting a construction bid of $26,265,000 — about $6,615,000 higher than earlier projections — and described how the city plans to cover debt service. Staff said the council previously approved increases to the Wastewater Improvement Fee (to $28.00/month) and the Water Improvement Fee (from $1 to $5.00/month) on Aug. 25, 2025; staff projected fund balances and noted that WW Improvement Fee reserves will temporarily cover a projected $3,375 shortfall in debt-service calculations.

Staff estimated the combined annual payment on the 2022 and 2025 Certificate of Obligation series for the WWTP at approximately $2,070,575. The city has roughly 5,200 active utility accounts; at $28/month that equates to about $1,747,200 annually, plus approximately $320,000 per year from sale of effluent water, leaving a small projected shortfall to be covered from reserves until the plant is online (expected Winter 2026). Council discussed the numbers as part of the tax-rate and budget deliberations and did not alter the fee decisions during this meeting.