A Monday evening workshop on a Carroll sanitary sewer rate study brought forth several different issues as the city plans for future services. Olivia Patton, a civil and environmental engineer with the study’s author, Veenstra & Kimm, Inc., presented the findings to council members. She says historically, Carroll has generated enough revenue from sanitary sewer rates to cover expenses. However, that is going to change with the need to pay for anticipated capital expenses. One of the issues at hand is how to bring more equity to the distribution of revenue between residential and commercial users and industrial.
It appears the two industrial users were not included in the last rate increase. Patton identified ways the council could create more equity in that distribution. Four options were presented. If rates were calculated on organic load, with residential/commercial paying 75 percent and industrial 25 percent, or by flow, residential and commercial at 90 percent and industrial at 10 percent, it would put a heavy load on industrial users with percentage of rate increases ranging from just over 215 percent to around 700 percent. The other two options would look at percentage increases to residential and then having industrial fill the gap.
These two options would average monthly consumer bills at $45.73 to $47.35 with industrial increases between 17 to 84 percent. Director of Public Works, Randy Krauel, says the unknowns regarding future capital projects are in two main areas right now. Copper compliance and nutrient reduction are currently in data collection phases directed by the Iowa Department of Natural Resources (DNR). Krauel says both issues could result in additional construction costs.
The previous rate structure, which last saw an increase in 2016, was designed to cover bond payments for large capital projects, the expenses of which are also offset by cash reserves. The council will be determining new rates to achieve this same goal. Council members have asked Patton for a breakdown of rate increases to be implemented in a multi-year structure and to explore additional ways to bring more equity between residential and commercial users and the industrial group. Full audio of the entire workshop can be found below.
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Full audio of sanitary sewer rate discussion 02-22-21
