City of Plymouth utility users can expect a rate increase for their sewer service this summer.
During Monday’s Board of Public Works and Safety meeting John Julien from Umbaugh, the city’s financial consultants presented a 23 page report that included an analysis of the sewer works regarding funding the upcoming $12.5 million dollar project.
Julien said, “The report shows an evaluation of your current financial situation. You have good financial strength.”
After looking at the daily operation costs of just under $2 million, the annual payment to the city of $140,000 instead of taxes, the annual outstanding debt payment of approximately $250,000, the proposed annual debt payment of $850,000 for the new bond and a debt services reserve account of $170,000 the current revenues is short about $459,000.
The recommendation from Umbaugh is to have a onetime rate increase of nearly 18%. Taking the average residential home that currently pays $21 for sewer services, the proposed increase would increase their monthly payment to $25.
Within the next 30 days the Board of Public Works and Safety will consider the recommendation from Umbaugh and then send their recommendation on to the City Council. The council would then hold a public hearing on the proposed rate increase.
The plan is to have the ordinance in place so that bonds could be sold on the open market in June and construction on the project could begin this summer. The proposed increase would go into effect this summer.
