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Understanding the ordinance which will increase utility rates

The existing Wastewater Treatment Facility has served the City of Nevada residents for approximately 60 years and is at the end of its life. It does not have sufficient capacity for planned industry expansion and projected population growth. The current location is unable to provide the additional effluent disinfection and nutrient removal requirements mandated by the Iowa Department of Natural Resources (IDNR).

The new wastewater treatment facility is being built three miles south of Nevada. Based on estimated costs of construction and operation, a rate analysis was performed by the City’s Financial Advisor. The City will be using the State Revolving Fund (SRF) program using loans repaid by sewer revenues.

In order to provide enough revenue to repay the debt incurred a rate increase is necessary. The City Council is currently considering Ordinance No. 1022 to increase the rates beginning with the April 1, 2022 utility bill. All utility bills will see an increase of $10.40. Rates will continually be evaluated in the future.

The Ordinance increases the Minimum charge from $12.16 to $20.00 and the Sewer Construction Charge from $2.44 to $5.00. The Minimum charge on your bill is added together with your usage charge and listed as Sewer O&M (Minimum charge + Usage Charge). The Sewer Construction Charge is listed separately as Sewer Cons on the bill.

If you have questions about your utility bill, please reach out to our City Hall staff, 515-382-5466, or stop at City Hall and we can walk you through a handout, so you have a clearer understanding of your bill.

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