Cost of sewer plant upgrades increases to $17M; council approves first $15M of debt

The Jefferson city council heard news that is getting familiar when large construction projects are concerned.

The council held a public hearing at its Aug. 23 regular meeting on a proposal to enter into a $15 million loan agreement for a state-required upgrade to the wastewater treatment plant. However, since scheduling the hearing the council’s water and sewer committee learned the cost of the project has increased to almost $17 million, reported city administrator Mike Palmer.

Palmer said the city’s financial advisor recommended the council move forward with the $15 million loan, and then borrow more when the money is needed. “I want the public and the council to be aware there may be more (debt) coming on this,” Palmer said.

There were no comments from the public at the hearing. The council then approved a motion to enter into a sewer revenue loan and disbursement agreement.

In another utility matter, the council approved the first reading of a 5 percent increase to water rates due to increased cost of the chemicals needed and to continue putting money into a sinking fund for anticipated water plant improvements. Effective Dec. 1, the base amount for the first 134 cubic feet of water will increase from $11.86 to $12.45. The price for each additional 100 cubic feet of water will increase from $7.44 to $7.81.*

The council also considered the first reading of a revised sewer rate ordinance. The council approved the first reading of the needed ordinance at the Aug. 9 meeting but it had an incorrect effective date. The rates are the same as approved previously, but the increase will not be effective until July 1, 2023.

The council approved Colin Shriver as a Jefferson fire fighter.

During his quarterly report to the council, Greene County Development Corporation director Ken Paxton told the council 16 Latino business owners from western Iowa are visiting Jefferson Aug. 30. They’re coming in response to information put out as part of the Nueva Vide en Greene County diversity initiative. “We’re excited about it. Normally when you have one or two businesses looking at an opportunity, it’s pretty good. We have 16,” Paxton said.

Paxton also reported that Zach Mannheimer, who is very familiar with Jefferson having assisted GCDC with the Vision 2020 in 2018, and now founder and CEO of Alquist 3D, has been in contact with him about the possibility of building 3-D printed housing in Jefferson or the smaller county communities.

Paxton said he’s working with all county towns to develop an inventory of all available in-fill lots. 3-D printed houses are less costly than traditional buildings, have 70 percent lower utility costs, and are safer, he said.

The council approved a development agreement with Nate Adams, doing business as 203 W. Harrison LLC, for the former middle school. The agreement is a requirement for Adams to access a $600,000 grant the city accepted from the Iowa Economic Development Authority for the project. The agreement outlines how the funds will be used.

The project, which involves repurposing the three-story brick school into apartments, must be completed by June 2024.

The council approved a façade improvement grant for $12,500 for repair of the corners and the masonry at the top of RVP~1875. City building officer Chad Stevens said the building would not be structurally safe without the work. The façade improvement grant program is a 50/50 match between the city and the building owner.

*On the Jefferson water bill, the amount of water used is shown under a “USED” heading, followed by the code WA. The cost of water is the first number in the “AMOUNT” column.

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