Jump ahead for sewer rates?

An increase in rates for Portland sewer service is coming.
“I know that we … need to have a rate increase and that’s inevitable,” said Greg Guerrettaz, a financial consultant for the city.
“It’s no longer a matter of if we will do something, but how,” said Portland Mayor Bruce Hosier.
“I think it’s no secret that the city’s under an agreed order with IDEM,” he said Monday night about the requirement that all communities separate storm and sanitary sewers.
“It’s not something you ask for but it’s the hand we’re dealt,” Hosier said.
Members of the Portland City Council took no action on a proposed two-step rate increase that could nearly double charges for sewage over the next two years, but a timetable was laid out that could lead to the increase being adopted early in 2011.
A sewer study has determined that a rate increase is necessary to help fund storm and sanitary sewer separation projects in the city.
A financial advisor suggested Monday during the city council meeting that city sewer rates be increased by 30 percent in 2011 and 27 percent in 2012.
In the city, sewer bills are based on the amount of water used. This means, that the sewer portion of a water/sewer bill for a household that uses 6,000 gallons of water would increase from $30.55 to $39.72, with the 30 percent hike. With the proposed 27 percent hike, the sewer bill would then increase to $50.44 per month.
Those who live outside the city currently pay a flat rate of $32.10 per month.
With the 30 percent increase, they would pay $41.73 per month. The 2012 increase would bring the flat rate to $52.99 per month.
The next major sewer project in the city is the north side sewer separation project. This project, which will be in the northeast side of the city, is expected to cost $5.8 million.
An official with The Schneider Corporation said Monday that the project will be done in two phases to ease the financial burden on the city.
This will also this will give the city more time to apply for funding, said Renee Goff of Schneider.
Kristi Sturtz of Sturtz Public Management Group told council members that increasing sewer rates will make the city more competitive for loans and grants. Also, the increase would be the city could get lower interest rates on loans, such as the state’s revolving loan fund. This loan is issued in the form of a bond.
Sturtz said city officials have not yet learned if federal funds will be earmarked for the north side sewer separation project. She said the city also could apply for Economic Development Administrative Funds, which would be a 50/50 matching grant, or a grant through the Indiana Office of Community and Rural Affairs.
Guerrettaz said an ordinance to increase sewer rates could be introduced in January, then a public hearing would follow. Bidding for the north side sewer separation project likely would be held in April of May, he said.
The north side sewer separation project isn’t the only one in the pipeline. There are other combined sewer overflows (CSO’s) in the city that will need to be eliminated, and the wastewater treatment plant will need some improvements in the next five or six years. During times of heavy rain, water tends to pool where there are CSO’s. The excess water sometimes flows into nearby streams and rivers.
In a related matter, Hosier announced that the city has made it through the first round of cuts in the Stellar Communities grant program.
The city has been awarded $10,000 to create a more detailed application for the final round. The city could receive up to $5 million in grant funds.
If awarded the grant, city officials plan to use the money to help fund the north side sewer separation project.[[In-content Ad]]