Wastewater project moving forward with rate increase
Wed, 11/20/2024 - 10:31am
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By:
Laura Wagner, contributing writer
The City of Mtn. View is moving forward on the wastewater collection system rehabilitation project. The project, which began in 2019, is slowly moving forward after the board of aldermen voted on a rate increase.
The increase for the sewer usage rate (not water rate) is to be set at $26.00 for the base 1,000 gallons and $9.00 for each 1,000 gallons used after the base. This increase is a necessary part of the rating structure which will provide the fund balance that the Department of Natural Resources (DNR) requires for this project loan. The new rate will go into affect December 15, 2024. City residents will see a difference on the bill they get the first of February.
The rates increasing to $26.00/$9.00 goes hand in hand with the city doing the yearly Consumer Price Index (CPI). On average the CPI is 2.5%. Mayor Charry McCann explained that the city would have an ordinance capping the CPI at 5%. Also in the ordinance, the minimum charge per month would be reviewed yearly. "If we do not have to increase the rate then we won't," confirmed Mayor McCann. "The rates and CPI will have to be reviewed yearly."
This project began in 2019 as the City of Mountain View passed a bond issue for the wastewater collection system rehabilitation. Town hall meetings, meetings with SCOCOG, DNR and engineering officials have led the city to the point where it is time to finalize contracts and ordinances to complete this project. The City of Mountain View received a grant from DNR in the amount of $3,500,000. This grant money will not have to be paid back. However, the loan from DNR in the amount of $3,091,500 at an interest rate of 1.57% will have to be paid back. This is a $6 million-plus project. One of the requirements from the loan is to have a replacement fund to replace/repair and maintain the wastewater system. The first payment for this loan will be due at the end of the fiscal year of 2025.