The residents of Shenandoah, Iowa, may soon shoulder a water rate hike in the wake of the findings from Ruan Securities at the City Council meeting last evening. In the evening of Tuesday, 13 August, 2013, it was revealed to us as the City Council and the city in general, that a rate hike is necessary to meet our obligations to secure the paydown of the eventual SRF loan for our much needed new water plant.
This news brought an immediate lull in the atmosphere of Council chambers as we are at all times accountable to the public by whom we are elected to tender important decisions affecting the city of Shenandoah. As we go forward it is important to take a step back and look at the larger picture. From what I gathered from the meeting this stemmed from conditions manifest since the decision was made some three or four years ago initially to raise rates.
The rates were smartly raised initially to bring down the eventual SRF loan amount that would be needed from the State of Iowa. This was projected to bring in excess revenues to fund this endeavor. It was projected to lighten the burden on the Shenandoah tax payer yet provide quality water for it's residents and industry for many years to come. At first this worked and we seemed on track. As revealed in Tuesday's meeting, climate conditions in the area have impeded on the cash flow. With the initial rate hike coupled with the drought conditions residents were more conservative last year in their water usage. It's a two-edged sword for any City Councilman. It's good to be conservative and it's what we've advocated in our time of water shortage. Yet, on the flip side this brings in few dollars for this needed fund which is used to pay contractors.
In addition, the many water studies and activities that we've had to undertake in an effort to secure a reliable water source has also added to our burdens. This problem was unforeseen, yet has manifest over the past couple years during the planning phases of the new water plant. These costs are above and beyond any contingency funding that I'm aware of.
So now we are where we are. Dilemma one, is that we desperately need a new water plant. Dilemma two, is that any new water plant takes capital to produce. Dilemma three, is that in smaller communities like Shenandoah it takes greater innovation and greater sacrifice on the part of residents to fulfill such high dollar projects. Dilemma four, we've got to pay for this water plant project!
There are no clear answers to any of the above listed dilemmas. This is something I've learned quickly in the year-and-a-half I've been on the City Council of Shenandoah, Iowa. You can't please everybody when you humbly make difficult decisions with the taxpayer funds. To me these are sacred funds. They represent the livelihood of families and the personal efforts to provide them quality services in their chosen community.
We as the City Council members didn't come away from our meeting with any degree of happiness. We are residents who are also bound by the very taxes we uphold. Many unforeseen things came about to bring us where we are. Yes, rates will go up - probably significantly. Most communities experience these types of hikes when they prepare for a new water plant. Yes, our rates will be on the high end for some time. When the next city is confronted with their own water plant problems they will probably take their own turn for notorious water rates. That doesn't make it any easier when we live with the fact that Shenandoah is not an overwhelmingly affluent community with loads of cash on reserve. These are delicate decisions that the City must make on your behalf. Please keep these facts in mind as we continue to magnify your faith in whom you've elected.
This news brought an immediate lull in the atmosphere of Council chambers as we are at all times accountable to the public by whom we are elected to tender important decisions affecting the city of Shenandoah. As we go forward it is important to take a step back and look at the larger picture. From what I gathered from the meeting this stemmed from conditions manifest since the decision was made some three or four years ago initially to raise rates.
The rates were smartly raised initially to bring down the eventual SRF loan amount that would be needed from the State of Iowa. This was projected to bring in excess revenues to fund this endeavor. It was projected to lighten the burden on the Shenandoah tax payer yet provide quality water for it's residents and industry for many years to come. At first this worked and we seemed on track. As revealed in Tuesday's meeting, climate conditions in the area have impeded on the cash flow. With the initial rate hike coupled with the drought conditions residents were more conservative last year in their water usage. It's a two-edged sword for any City Councilman. It's good to be conservative and it's what we've advocated in our time of water shortage. Yet, on the flip side this brings in few dollars for this needed fund which is used to pay contractors.
In addition, the many water studies and activities that we've had to undertake in an effort to secure a reliable water source has also added to our burdens. This problem was unforeseen, yet has manifest over the past couple years during the planning phases of the new water plant. These costs are above and beyond any contingency funding that I'm aware of.
So now we are where we are. Dilemma one, is that we desperately need a new water plant. Dilemma two, is that any new water plant takes capital to produce. Dilemma three, is that in smaller communities like Shenandoah it takes greater innovation and greater sacrifice on the part of residents to fulfill such high dollar projects. Dilemma four, we've got to pay for this water plant project!
There are no clear answers to any of the above listed dilemmas. This is something I've learned quickly in the year-and-a-half I've been on the City Council of Shenandoah, Iowa. You can't please everybody when you humbly make difficult decisions with the taxpayer funds. To me these are sacred funds. They represent the livelihood of families and the personal efforts to provide them quality services in their chosen community.
We as the City Council members didn't come away from our meeting with any degree of happiness. We are residents who are also bound by the very taxes we uphold. Many unforeseen things came about to bring us where we are. Yes, rates will go up - probably significantly. Most communities experience these types of hikes when they prepare for a new water plant. Yes, our rates will be on the high end for some time. When the next city is confronted with their own water plant problems they will probably take their own turn for notorious water rates. That doesn't make it any easier when we live with the fact that Shenandoah is not an overwhelmingly affluent community with loads of cash on reserve. These are delicate decisions that the City must make on your behalf. Please keep these facts in mind as we continue to magnify your faith in whom you've elected.
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