By PETER HUSSMANN
The Newton City Council put the kibosh on a proposal to hike sewer rates 10 percent saying they would rather see increases linked to specific projects rather than just amassing more money to have on hand for future yet-to-be-identified project work.
The council was met on Monday with a proposal from Public Works Director Keith Laube to raise rates to create an additional $220,000 in annual revenues in the sewer fund. He said that new money will help fund a number of projects previously identified as necessary upgrades without the need to possibly issue bonds.
According to information provided to council, the sewer fund is projected to have a balance of approximately $1.5 million at the end of the current fiscal year. Projects slated for the coming year, including purchase of stand-by generators, relocation of the prison force main, HVAC work at the Lambs Grove and southwest pump station and minor improvements to the southwest sewer basin to alleviate residential basement flooding in the Callison Park area, would drop the balance to just more than $700,00.
Councilman Mike Hansen said he would prefer to see rate increases based on either the departments operational needs or specific project improvements. If small percentage increases are needed to sustain operations, then those increases should be budgeted.
"We have operational costs on the infrastructure we already own," he said. "If we anticipate a repair, then budget for it."
However, if an increase is needed to fund the cost of larger project, then that cost should be identified at the time it is necessary. Further, when the project is done, the increase in sewer rates associated with that project would then come to an end.
"I believe people would understand why an increase is needed," he said, noting the city is sometimes "at the mercy of state agencies" when it comes to sewer projects that must be undertaken.
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