Water and sewer rates are going to be increasing for the city of Mount Vernon for the next two years.
City administrator Chris Nosbisch said he had been trying to hold off on any increase that would impact higher than an annual 3 percent increase for the services, but for the next two years the city will be seeing an increase of 5 percent for sewer and 3 percent for water.
“We have a needs test for the bonds we currently have for the sewer that is requiring this increase in payments,” Nosbisch said.
On top of that, Nosbisch said that the current inflation rates of eight percent have meant that a 3 percent increase does not keep up with the cost of running the plant.
The city also has another phase of the nutrient reduction required by the Iowa Department of Natural Resources with a cost of $1.5 to $1.8 million.
Nosbisch said rate increases will go live in April after the city budget has officially been approved, as opposed to waiting until July 1.
“I’m not looking forward to roughly eight percent increase in my water and sewer bills, either, as a citizen,” Nosbisch said.
Nosbisch said he is cognizant as well of the planned increase of electrical costs for citizens.
“I can hold off on any rate increases for water for a couple more years, but sewer rates need the increase now,” Nosbisch said.
For an average house, a five percent increase to sewer rates would be roughly $3.50 a month.
Council member Craig Engel said that is a lot less than the proposed Alliant rates.
Nosbisch said that the city is also dealing with changes to the property tax proposed by the legislature, and increased mandates that they also proposed. The Nutrient Reduction Act was one of those mandates from the state in recent years to keep a licensed wastewater treatment plant operational. The UV disinfection and a plan to further reduce the nutrients in runoff water were the requirements in this 10 year license.
Council member Paul Tuerler said that the mandates being passed on to cities at the same time that the legislature makes tax cuts is pushing some of those service costs down onto city, school and county budgets to provide the same services that were previously provided.
“Instead of investing the surplus they are now creating with their property tax changes back into communities to take care of basic services citizens have come to expect, they are taking credit for making cuts and passing this on to cities,” Tuerler said. “We as a city have to find a way to do so.”
Tuerler said Mount Vernon is in a fortunate situation to be able to weather some of these mandates on their budget this year, but other communities are not going to be so fortunate and have much harder decisions to make.
“I feel very strongly that the community and taxpayers know the shell game that is being played at the state level,” Tuerler said. “When you have concerns with these rising water and sewer rates, you should be calling your state representatives and senators about this because their changes to mandates and property tax are what is causing this.”
Nosbisch said Mount Vernon’s roughly $2 million cost for nutrient reduction plans is smaller than some of the other communities looking at $20 million to $30 million costs.
Without making these adjustments to rates and tightening the city’s budget in the coming year, Nosbisch said his other alternative is to start looking at service cuts.
“We only have two individuals in the sewer and water department,” Nosbisch said. “We’re already doing what we can with the minimal amount of employees to provide services in our town. I feel we’ve been very efficient, and working together with Lisbon for things like our police department. I’m anxious to see what the next five years bring and how this impacts the operation.”
Council approves cigarette license for second smoke shop
The Mount Vernon City Council approved the cigarette license for Smoke Shoppe and Vape, which will be located at the old Mount Vernon Creates storefront.
The issue had been tabled for the past two council meetings by the council due to questions that arose.
City administrator Chris Nosbisch said there was not anything in the current ordinance that would allow for putting a hold on the business from opening in Mount Vernon. The city council can look at putting a moratorium on additional tobacco or cigarette shops as they look at potential changes to that ordinance in the future, but nothing in code disallows any business from opening.
Council member Stephanie West said she will be absent from the March 18 meeting, but would voice support for a potential moratorium while the council does review the appropriate code items, especially with two cigarette shops opening in Mount Vernon in the past six months.
The license for the Smoke Shoppe and Vape was approved unanimously.