Editor’s note: The initial version listed the project’s total cost as $3.7 million, rather than the $5 million that is estimated. The story has been updated to reflect the correct figures.
Plans for the City of Carroll to address long-standing complaints of low water pressure in the northwestern parts of town are advancing, but city officials disagree on how the effort should be funded. During a budget work session on Wednesday evening, city staff outlined their plans to raise water rates over several years to pay for the approximately $5 million project, $3.7 million of which will be borrowed by the city. Ward 2 Councilman Jason Atherton suggests the city explore other options, such as the city’s $964,000 remaining balance from the American Rescue Plan Act (ARPA), to avoid passing additional costs to residents and businesses.
City Manager Aaron Kooiker says that could be a valid option, but he recommends diverting the remaining ARPA funds to economic development initiatives.
Atherton says people are more worried about their grocery bills and the price of eggs than economic development. Ward 3 Councilman Kyle Bauer and Ward 4 Councilwoman Carolyn Siemann believe a growing tax base is a better long-term investment over a one-time project cost reduction.
Siemann suggests that a nearly $1 million investment in economic development will lessen the burden on taxpayers over a much longer period than a one-time cost offset to a capital project. Kooiker roughly estimates that the ARPA funds would reduce the scheduled water rate increases by about a dollar per month for the average consumer.
While they did not take a formal vote on this particular budget issue Wednesday evening, there did not appear to be enough support from the council to change the budget on these line items as they were presented. Video from this section of Wednesday’s work session is included below.
______
