Council committee reviews 4% sewer-rate proposal for 2027 as plant upgrades and county accounts drive costs

Council's Committee of the Whole discussed a proposed 4% increase to all sewer usage and base rates in the city's 2026 sewer-rate schedule, presented as a proposal for 2027. Chair (voice 2) summarized preliminary administration estimates that a 4% increase would generate roughly $260,000 in additional revenue next year if customer usage remains stable, of which about $90,000 would be associated with contractual personnel increases.

Mayor Larry Patterson outlined operational drivers behind the recommended increase, including deferred work on primary clarifiers that were not renovated during the 2015–2016 $20 million plant project and anticipated EPA-driven improvements. He also described a temporary traffic closure for a deep 25-foot utility excavation on Richland Avenue at Dairy Lane tied to sewer system work, estimating a 30-day disruption for that project.

Auditor Thomas (voice 11) said the administration negotiated a 0% loan for much of the prior plant work and that the city expects potential principal forgiveness of about $8,000,000, which could materially reduce future debt service if secured. Council members asked about revenue expectations from county accounts added under a county sewer extension; the mayor said about 1,100 accounts are currently coming in under an agreement capped at 1,500 accounts and that the extension responds largely to failing septic systems along Margaret Creek.

Officials also discussed operational offsets: a local solar array supplies about 60% of the wastewater treatment plant's electricity today and, if purchased at contract option in about 4.5 years, could free roughly $300,000 of annual electric costs, which would change future rate planning. The committee did not adopt ordinance language at the meeting but signaled that fee proposals would move to first reading for additional analysis and ordinance drafting.