The Glidden City Council has approved the final reading of an ordinance change that will incrementally increase sewer rates over the next three years. According to Administrator, Brooke Peterson, the hikes are necessary to help repay a $2.9 million State Revolving Fund (SRF) loan taken out to finance the approximately $4.5 million lagoon project currently under construction in town. Peterson says the rate changes go into effect at the beginning of Fiscal Year (FY) 2022.
These changes reflect a 50-cent annual increase to fees and a 51-cent increase to usage rates. The ordinance will raise fees to $11 per month and rates to $11.30 per 1,000 gallons in FY23 with a similar hike in FY24. The city had originally planned for these tiered increases to continue for the next six years, but the council chose to reevaluate the ordinance prior to FY25.
In addition to the SRF loan, the council is funding the project through a $500,000 Community Development Block (CDBG) grant, surpluses in their electric utility fund with the remainder coming from General Obligation (GO) bonds if additional funding is required. Peterson says work at the lagoon site is well ahead of schedule.
Public notice of the ordinance change was published Thursday, and Peterson says the city will also be notifying customers of the price adjustments in upcoming utility bills and newsletters.
