(Spencer)– The Spencer City Council Monday evening approved the second consideration of an ordinance revision that would increase sewer rates by 25 percent. The increased revenue would go toward upgrading the city’s wastewater treatment plant. City Manager Kevin Robinson says it’s based on a recommendation from a consultant…
“So the model the council adopted to move forward with was a 25 percent across the board fee increase to take us to the end of this fiscal year, June 30, 2026. As far as using cash to buy down fees, all of that is accounted for in the model that PFM presented, along with our current interest rates and earnings. If that cash was not accounted for in that model, it would have had a higher recommended raise than 25 percent.”
Councilman Brian Balk expressed concern over the amount of the proposed increase…
“25 percent compound interest over five years is just too steep for any community member to absorb. While I’ve preached behind the deious of best practice, frankly it sounds like there are moves that could be made to lower this, maybe not tonight for the first round, but moving forward. And I would ask the council as you get into the next fiscal season and the new members take their place, that you continue to explore options to keep these rates low.”
Robinson clarified, saying the 25 percent increase would not be compounded…
“There is no compound. You’re voting to take the current fees up 25 percent. Those other discussions will occur in the budgetary process and as you guys have directed us before to try to come up with the most affordable solution that we can to the citizens, which is why we’re using cash to buy down the future cost of the plant related to the fees.”
The matter will come back to the council for a third consideration and possible adoption in December.
