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Mid Rivers Newsmagazine 6-7-17

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MIDRIVERSNEWSMAGAZINE.COM<br />

By NATHAN RUBBELKE<br />

The debate isn’t about whether O’Fallon<br />

sewer district rates have to go up. It’s about<br />

how much.<br />

At its May 25 workshop meeting, the<br />

O’Fallon City Council reviewed three<br />

options for potential rate increases, opting<br />

to move forward with a plan that will raise<br />

rates by about $12 over the next five years<br />

to help fund capital projects for the city’s<br />

wastewater treatment plant.<br />

In 2015, the city set its rate structure<br />

through 2021, but new ammonia discharge<br />

requirements handed down by<br />

the Missouri Department of Natural<br />

Resources forced the city to go back to<br />

the drawing board.<br />

Working with engineering firm Woodard<br />

& Curran, a 20-year capital improvement<br />

plan has been developed and broken into<br />

two 10-year periods. Necessary improvements<br />

identified in the first period, ending<br />

in 2027, include ammonia upgrades and<br />

biosolids improvements.<br />

In a presentation to the city council,<br />

Water and Sewer Project Manager Chris<br />

Horvath, along with representatives with<br />

Woodard & Curran, presented three scenarios:<br />

a minimum, intermediate and allprojects<br />

plan.<br />

The minimum scenario calls for $49.5<br />

million in projects necessary to keep the<br />

wastewater treatment plant compliant<br />

and operational. The projects include the<br />

required ammonia upgrades, estimated at<br />

$26 million.<br />

Under the minimum scenario, the average<br />

O’Fallon resident’s rate would increase<br />

from $18.33 in 20<strong>17</strong> to $23.61 in 2022.<br />

However, that scenario is not favored by<br />

the experts.<br />

“The minimum option we are presenting<br />

here from a technical standpoint, we would<br />

not recommend. We do give it to you so<br />

you can see it for illustrative purposes,”<br />

said Jennifer Anders of Woodard & Curran.<br />

The intermediate plan includes additional<br />

improvements, totaling $64.3 million,<br />

forcing the average rate to rise to<br />

$27.43 in 2022. The last option, described<br />

as the “all projects” proposal, would fund<br />

the full range of recommended capital<br />

improvements for the 10-year period at an<br />

estimated price tag of $77.6 million. Under<br />

the final scenario, rates would rise annually<br />

from $18.33 in 20<strong>17</strong> to $30.03 in 2022.<br />

While the “all projects” plan comes at<br />

a significantly higher price than the other<br />

two options, Horvath and Anders stressed<br />

that it includes only projects necessary for<br />

keeping the wastewater treatment plant<br />

operational long-term. Anders said the<br />

scenario doesn’t include any “luxury-type”<br />

items.<br />

“If you push that $13 million off and you<br />

push it off another one, three, five years,<br />

those costs are just going to further escalate.<br />

It’s not going to go away,” she said.<br />

“You’re still going to have to spend the<br />

money. It’s going to become more costly to<br />

do it and you’re going to carry additional<br />

risk during the time you haven’t made that<br />

investment.”<br />

Multiple members of the council agreed<br />

with those sentiments. Councilmember<br />

Tom “Duke” Herwick [Ward 2] said he<br />

hates raising rates, but funding all the projects<br />

prevents saddling future generations<br />

with the costs.<br />

“My feeling is if we keep kicking the can<br />

down the road on the rest of that $77 million,<br />

that’s irresponsible,” Herwick said.<br />

“The systems are going to fail eventually<br />

and it’s better to get control of it now.”<br />

Councilmember Rick Lucas [Ward 1]<br />

said the capital improvement plan doesn’t<br />

include a list of “what-ifs,” but rather just<br />

those projects needed to keep the city’s<br />

June 7, 20<strong>17</strong><br />

MID RIVERS NEWSMAGAZINE<br />

O’Fallon City Council selects sewer district rate increase plan<br />

I NEWS I 9<br />

plant functional.<br />

“Sometimes you just have to bite the<br />

bullet and understand that the cost of doing<br />

business is the cost of doing business,”<br />

Lucas said.<br />

Eight members of the council voted in<br />

favor of the $77.6 million plan that will<br />

raise rates to around $30 per month. Councilmembers<br />

Reid Cranmer [Ward 3] and<br />

Jeff Schwentker [Ward 4] were opposed.<br />

With the council’s approval, Horvath<br />

said the next step is a public hearing.<br />

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