The $9.5 million I-JOBS check that Iowa Gov. Chet Culver presented to Davenport last week, combined with a scaled-back timeline for implementing some future sewer work, will allow aldermen to decrease the size of a looming sewer rate increase on businesses and residents.
Two days after Culver delivered the check, which will help fund the $56 million west side sewer diversion tunnel project, city council members got together to crunch numbers, hoping to take some of the sting out of the rate hike.
Previously, city staff put the needed residential rate increase at $8.11 per month for the average homeowner and a 30 percent increase for industrial and commercial users. Now, under a financing plan recommended by City Financial Officer Alan Guard, the residential rate would go up by $4.43 per month and the industrial and commercial rate by just under 20 percent.
“We’re very cognizant of the fact the economy is not in good shape and people are hurting,” Mayor Bill Gluba said Monday. “We don’t want to add to that burden any more than is necessary.”
Gluba said the city will concentrate on doing the sewer diversion tunnel and Iowa Department of Natural Resources-mandated work in the first year of the new sewer program. Over time, however, a full slate of $175 million in needed projects and repairs will be completed, using money from the new rates, and hopefully more state and federal grants, Gluba said.
It has been 18 years since Davenport last increased the flat sewer bill rate of $5.75 per quarter. Meantime, the sewer fund cash reserve has been raided to pay for repairs, new lines and improvements mandated by the Iowa Department of Natural Resources, or DNR. As a result, the fund balance that was $9.4 million in 2002 fell to zero in 2009. The sewer fund will go into deficit next year if rates are not increased, Guard said.
Stormwater infiltration into the sewer system also has been a recurring problem, resulting in broken laterals that cost residents thousands of dollars to repair and send raw sewage flowing into creeks and the Mississippi River.
Ald. Gene Meeker, at-large, said he has met with many business owners, ranging from those in large corporations to small business, and the majority are in favor of doing the projects. The biggest objection they had was the suddenness and size of the increase as originally proposed.
“People I’ve talked to said they appreciate we’re taking on this decision and taking responsibility for it,” he said. “We’re very positive that we can now help lower their sewer rate increase.”
Third Ward Alderman Bill Boom said the hike still will be felt, but is more palatable.
“Users said if we can reduce it, they can budget for it,” he said. “I think we’re on the right path now. I think we’ve carved out the best plan we can.”
The ordinance setting the new rates will have a second reading at Wednesday night’s city council meeting. It will have to be amended for the lower rates to be approved.
