Valley residents to see higher sewer bills

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SPRING VALLEY – Spring Valley residents will see an immediate double digit increase on their sewer usage bills.

After a long and heated finance committee meeting, Spring Valley aldermen approved a more than 20 percent increase in the average resident’s sewer bill, boosting the bill from $48 to $58.50. Rates will also increase an additional 3 percent in both 2010 and 2012.

Aldermen first met in the finance committee meeting to discuss the proposed sewer and water increase prepared former city engineer Larry Good, who updated aldermen on the status of the city’s hopes for $4.5 million in federal stimulus funds to separate the city’s combined sewer and stormwater, replace the Ladd Road sewer, and do work on the water main work in the southeast part of town.

If the city receives the funds, they will be received as a 25 percent grant and a 75 percent loan, offered at 0 percent interest with a payoff period of 20 years.

To receive the funds, the city has to be prepared with a plan for paying the 75 percent portion back, which led to the need for the sewer fee increase. There is also a long list of needed and wanted sewer projects, which City Engineer Jack Kusek said amounted to another $3 million.

Alderman Tom Nesti said he was opposed to the size of the increase, and said he has recommended focusing on one project at a time, which would require smaller increases to residents.

“This is too much to throw at them all at once,” he said. “They’ll be looking at $100 water bills.”

Alderman Walt Marini disagreed, saying that by focusing on all three projects, the city could be looking at $1.1 million in “free” grant money.

Alderman Dan McFadden said he spoke with Kusek recently and found out that the proposed increase would not be enough to cover both the payback if the city receives the money and the other projects that need to be done.

Another problem is the engineering fee of $280,000 that the city owes Chamlin and Associates, Good’s firm, for doing the design work for the three projects. If the city receives the stimulus money, that fee can be rolled into the projects, but if the city doesn’t get the stimulus funds?

“We still owe the guys that money,” Mayor Cliff Banks said..

The committee then discussed the urgency of the additional projects, which Banks said had to be done due to “bad maintenance” over the years.

Aldermen debated the amount of the increase, ranging between concerns that it wasn’t enough to pay for all of the necessary projects, and worries that it was too great a burden for residents.

In the end, the aldermen went with Kusek’s proposal on a 7-1 vote, with Nesti casting the negative vote.

The rest of the aldermen didn’t seem to think there was any choice.

“The longer we wait, the more we’re going to have to increase to catch up,” Alderman Chuck Hansen said.

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