CLARINDA, Iowa - An increase in sewer rates could be in store for Clarinda.
At its meeting last week, the City Council instructed the city manager to prepare an ordinance that would raise the minimum fee to $12 and charge $5 for each 1,000 gallons beyond the minimum.
The current minimum sewer fee is $7 with $4.60 for each additional 1,000 gallons.
City Manager Gary McClarnon recommended an increase because sewer revenue is between $5,000 and $6,000 per month less than what was projected for the fiscal year.
“It's definitely a concern,” McClarnon said. “We're losing money.”
Besides ensuring the sewer utility is profitable, McClarnon said the city needs to prepare for an investment in a project to disinfect the discharge at the treatment plant.
The council also adopted its proposed budget for fiscal year 2011.
It lowers the city tax levy by 14 cents to $18.13 per $1,000 of assessed valuation and projects a positive balance in the general fund by the end of the fiscal year.
The council also agreed to refinance bonds issued by Clarinda in 2003 and 2004 into one series at a lower interest rate to save about $51,000 over the next five years.
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