Seward residents will see higher rates for water, wastewater and electrical services on their October bills.
The Seward City Council on Oct. 1 approved planned rate increases for the three city services, which were included in the 2024-2025 budget approved in late September.
While water and electric rates are increasing 3% to keep up with inflation, the city increased wastewater rates 15% to help pay for the planned replacement of the wastewater treatment plant.
For many families, that will not be a big difference, but City Administrator Greg Butcher said the city council understands the increase will be more challenging for some families.
He said a family of two adults and three children that had a monthly wastewater bill around $47 in September would see an increase of $7 with the new rates.
Wastewater bills are based on a residence’s average usage in winter months when people are not watering yards and gardens, he said.
The dollar impact for commercial users will be much higher, he said, but the rates are designed so all system users pay their shares and allow residents to cut back on water usage when possible to save money.
The wastewater project is expected to cost $32 million, and while some preparatory work has been done at the site, the city does not have funding or a specific timeline for when that project will begin. The recent dirt work done at the site cost the city around $600,000.
The city has been saving part of its wastewater revenue to put toward that project while it continues to seek federal and state grants. The increase will help that savings plan.
But the rate increase will not be enough to finance the city’s new plant, Butcher said.
The wastewater project is a major one and financing for it will likely include a 20- to 30-year debt for the city. The money put aside now will help to make that financing work.
A significant amount of federal funding has been earmarked for water projects around the country as part of COVID relief programs, but Butcher said Seward’s status as a relatively affluent community makes it more difficult to qualify for those grants.
At the same time, the growing number of projects across the country increases the demand for pipes, labor and other expenses related with such work “way beyond normal inflation,” Butcher said.
“We are looking at a gigantic wastewater project that we need to undertake,” he said.
The existing plant is utilizing a majority of its capacity and can handle Seward’s continuing growth, he said, but not for too many years. Seward’s system is compliant with wastewater management standards.
City officials have worked with U.S. Rep. Mike Flood and State Sen. Jana Hughes to see if assistance may be available for Seward. One bill proposed at the state level earlier this year was not opposed, but did not have the “legs” to advance, Butcher said.
Other cities that have dated plants and are seeing some growth will likely have a similar experience.
Butcher said the 3% increase for water service is close to area trends and reflects inflation and the need to pay for work such as the Sixth Street water main project that has seen some cost overages this year.
Seward’s water costs in general tend to run higher than some other communities because the city treats drinking water with its reverse osmosis system to address nitrates and other elements in local water.
The city recently sent surveys to residents to assess the amount of lead pipes now in use, but Butcher said it is also doubtful the city would qualify for the federal grants to replace those.
Butcher said the 3% increase in city electric rates reflects the cost of power and equipment, as well as the competitive market for staff. Seward competes not just with other towns, but with large systems like Norris Public Power District, Nebraska Public Power District and the Lincoln Electric System for linemen in this area.
