The Board of Public Works held a budget workshop followed by a regular session in which updates on various projects were heard and a sewer rate increase was approved Thursday night at city hall.
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The Board of Public Works held a budget workshop followed by a regular session in which updates on various projects were heard and a sewer rate increase was approved Thursday night at city hall.
City Administrator Kerry Sampson discussed the Tinsman Sewer Project and explained that Trenton Municipal Utilities Director Chad Davis has the bid specifications ready to send to the Economic Development Administration. Sampson explained that the city will receive $440,000 from an EDA grant and part of the remaining $300,000 will be obtained through Missouri Association of Municipal Utilities bonds. The project will include the three sewer lines which run under the track but may not include the stormwater lines due to funding restrictions. Sampson explained that since this is a very large part of the project costs, the city may slipline the existing lines if the bids are too low to still receive the EDA grant, which requires that the project cost a certain amount. He stated that with the cost of the sanitary sewer work the project is still expected to be within the EDA guidelines. The city plans to send bid proposals out to 10 to 12 design firms and hopes to receive three to four proposals for review.
The Electric Systems Study by Blakely and Associates Consulting Engineering, Inc. has been completed and once the analysis has been reviewed by members, the board plans to meet with the contractor and discuss their options.
TMU Comptroller Teresa Price addressed the board concerning a sewer rate increase. She explained that the city is required to maintain a 110 percent debt covenant ratio and that next year, with the additional debt of the Tinsman Project, the resulting ratio will be at 99 percent. To maintain the proper ratio and stay in good standing for bonds, there is no way to avoid a rate increase. The proposed increase would affect the average customer $1.57 per month and would bring the budget to 127 percent debt covenant. She reminded board members that the increased rate is still within the average of other communities. The board approved the 12 percent sewer rate increase. The new rate will become effective March 1 and will be reflected on customer billing April 1.
The board also heard updates on the Water Main Replacement Project and the South Payne Lift Station. Discussion of the Waste Project at the Water Plant was postponed.
Following some minor changes, the board will receive a final draft of the budget for review at the next meeting.
The next Board of Public Works meeting will be held at 5:30 p.m. on March 18.