Apr. 4—Effingham is considering a sewer rate increase as the city looks to secure the revenue it needs to cover the cost of several sewer department projects, including an Environmental Protection Agency (EPA) mandated phosphorus reduction project.

During the Effingham City Council’s meeting Tuesday, members considered a proposed 5% increase to the city’s sewer rates following a recent study conducted by an engineering consultant, Stantec.

“Every four years, just like our water rates, we do a study for our sewer rates as well for the sewer bill and all the operation and maintenance costs that it takes to operate the wastewater treatment plant and anything related with the sewer fund,” Effingham Public Works Director Jeremy Heuerman told the council.

Heuerman said that after reviewing the findings of the study with David Hyder of Stantec, the consultant recommended an “extremely high” sewer rate increase of 10%, but they managed to cut the increase in half by “whittling down” some of the projects putting a strain on the department’s budget.

“The main thing that’s driving this is our biological phosphorus reduction program. That’s part of our NPDES permit,” he said regarding the sewer department’s National Pollutant Discharge Elimination System permit. “We’re not the only community doing this.”

Under the reduction program, the city will have to reduce its levels of phosphorus to 0.5 milligrams per liter of water by 2030. He said this is a “huge project.”

Heuerman predicts that the city will need to take out an approximately $8 million bond to cover the cost of the phosphorus reduction project. He said it would cost the city about $800,000 annually to finance the bond at a rate of 4% for 20 years.

“And it’s basically going to be a full overhaul of the wastewater treatment plant,” he said. “It’s been about 20-25 years since we’ve had a change in the wastewater plant of this size and magnitude, and that’s what’s really driving our rates up a couple extra percentage points than what we’re normally used to over the next four years.

“We’ve pushed out what we can, but there are some things that we still have to address. Our equipment is aging, so in that bond we’ve actually included a couple upgrades for a sludge press, the headworks, things like that that haven’t been touched for almost 30 years.”

Stantec recommends that the city increase its sewer rate by 5% for the next four years. After those four years, the city will reevaluate the matter.

“No one wants to see their rates go up, but new regulations are always being imposed by the EPA,” he said. “They’re always making water cleaner.”

Effingham City Attorney Tracy Willenborg told council members that some surrounding municipalities recently increased their sewer rates.

“In the municipalities that I represent, you’re seeing a lot larger than 5% for ones that are kind of going through the same course, and what the city is doing is making sure it’s in compliance with the EPA.”

If approved, the increased sewer rate would take effect May 1.

“Nobody likes an increase, especially me, but I understand we have to have it,” Effingham Mayor Mike Schutzbach said.

The council did not take any action on the proposed sewer rate increase during its meeting Tuesday, but council members will revisit the matter during their next meeting which is scheduled for April 16.

Effingham City Commissioner Hank Stephens was absent from the meeting.

In other matters, the council:

—Held a public hearing regarding the city’s proposed budget for the 2025 fiscal year. No comments were made by the public during the hearing, and the council will vote on the budget during its next meeting on April 16.

—Approved an amendment to the city’s zoning ordinance that rezones a property on Blohm Avenue from R-3B Two and Three Family Dwelling District to R-3D Multiple-Dwelling District and grants a special use permit to Meraki Health that allows for the development of clinic there.

—Approved an ordinance that will return a petition to rezone a property at 909 W. St. Anthony Ave. from R-2 Single Family Residence District to R-3B Two and Three Family Dwelling District to the Effingham Plan Commission for further hearing.

—Approved a fourth amendment to the master lease agreement between the city of Effingham and Arts Connection of Central Illinois as it pertains to insurance coverage for the Effingham Performance Center.

—Authorized the acquisition of a temporary use permit for utility purposes from Herman R. Brummer and Sharon B. Brummer at 110 S. Henrietta St.

—Approved an ordinance establishing pay ranges for the city’s various non-union salaried and hourly positions for the 2024-25 fiscal year. This includes a 3% salary increase for city employees.

—Authorized the acquisition of a temporary use permit and the purchase of an easement for utility purposes from Jeffrey R. Miller at 925 N. Merchant St. in the amount of $300.

—Authorized the purchase of real estate for right of way and utility purposes from Andrew J. and Casey L. Burgholzer at 300 Flamingo Ave. in the amount of $4,676.

—Authorized the acquisition of a temporary use permit and the purchase of an easement for utility purposes from Christine M. Drum at 917 N. Merchant St. in the amount of $300.

—Authorized the acquisition of a temporary use permit for public street and utility purposes from FP7 Enterprises, LLC at 914 N. Merchant St.

—Authorized the acquisition of a temporary use permit for public street and utility purposes from FP7 Enterprises, LLC at 916 N. Merchant St.

—Approved a resolution accepting chemical quotes for the 2024-25 fiscal year.

—Approved the appointment of city staff who are appointed on an annual basis.

Nick Taylor can be reached at nick.taylor@effinghamdailynews.com or by phone at 618-510-9226 or 217-347-7151 ext. 300132.