Background/Discussion
The City provides sewer service to residential, commercial and industrial customers both inside and outside of the Council Bluffs City limits. This service consists of the collection, transmission, treatment, and discharge of sewage generated by customers. The City charges sewer rates which are based on the flow volume the customer adds to the system, and in the case of industrial customers, the level of treatment required to meet permit standards.
A rate study for the City’s sanitary sewer enterprise fund was completed in June. The study assessed the existing revenues based on the revised rate structure and in an effort to determine whether adjustments are necessary. The study considered ongoing operations and maintenance of the sanitary sewer system as well as anticipated wastewater plant infrastructure upgrades and treatment capacity expansions.
The City’s last increase was approved in 2015, which included a phased approach over 5 years and implementation of a more equitable rate structure. The previous raise to rates occurred ten years prior (2005).
The study revealed that sewer rates are still too low. In order to address increases in operation and maintenance costs and the replacement of aging infrastructure, an increase to the sewer rates is recommended.
Council Bluffs remains near the bottom for rates in Iowa.
A summary of the increases are listed below:
1) 5.22.010 (in-town unit rate):
a. 26% for year 2021, 8% for years 2022-2025
b. Fee increases match for all volume groupings (no declining rate block)
2) 5.22.010 (out-of-town unit rate):
a. 26% for year 2021, 8% for years 2022-2025
b. Fee increases match for all volume groupings (no declining rate block)
3) 5.22.020 (flat rate users): one increase to match in-town residential
a. 26% increase for year 2021; does not continue to increase past this ($28.80)
4) 5.22.020 (minimum sewer charge):
a. 46% for year 2021, 5% for years 2022-2025
5) 5.22.050 (administrative fee): unchanged
6) 5.22.060 (in-town industries):
a. 83% for year 2021, 8% for years 2022-2025
7) 5.22.060 (out-of-town industries): increased to match in-town industrial percentages
a. 83% for year 2021, 8% for years 2022-2025
8) 5.22.060 Surcharges for BOD, TSS, and Oil & Grease: unchanged
a. No increase to the loading surcharge on top of the flow rate increase
9) 5.23.020 disposal fees for septic tank: unchanged