By By MICHAEL C. GUILMETTE JR. / Niles Daily Star
NILES – City residents will be tapped to help bear the burden of the $11.9 million sewer upgrade for Niles.
Beginning Feb. 1, sewer rates will jump 12 percent, followed by an annual increase of 7.8 percent for the following four years. Afterwards, the rate would increase 2.25 percent per year as a hedge against inflation.
The project, specifically addressing improvements to the wastewater treatment plant, was approved Monday night at the regular city council meeting. It will focus on key repairs to the plant: the influent headworks, costing $4 million, the biosolid handling system, costing $5 million, and the disinfection system, costing $2 million.
Jim Lehmkuhl, utilities manager for the City of Niles, said the average customer, paying $18.96 a month, can expect to see a $12 increase in sewer rates during the next 10 years. He added these rates are estimates, and the first increase beginning next month will add about $2.25 to the average monthly bill.
Since his figures are projections, Lehmkuhl said the city will review the rate increases each year throughout the 20-year life of the bond. If the revenue generated by the higher rates is more than is necessary to repay the bond, he said the rates could be adjusted down.
Lehmkuhl and Jack Rafter of Fishbeck, Thompson, Carr &Huber of Grand Rapids presented the proposal to the council at a committee meeting prior to the board's regular meeting. The plan was passed unanimously, and construction is expected to take place in 2008 and early 2009.
At the opening of the regular meeting, Mayor Mike McCauslin and Tom Bybee of the Niles Housing Commission recognized John Leich, former executive director of the commission, for his service to the board.
Also at the meeting, the council approved $17,991 for an electric fence purchase from TransGard of Palmyra, N.Y., $34,200 to hire House Works, Inc. of Dowagiac for janitorial work and $45,331 to purchase distribution transformers from WESCO of Chicago.
Council members also approved 12-year tax abatements for Cut-Tech, Inc. and Toefco Engineered Coating Systems, Inc.
Three home improvement loans, totaling $39,862.85, were passed – one for Duane Coplen at 322 Emmons St., totaling $10,340, a loan for $6,300 for Barbara Hall of 1225 N. Ninth St., and a loan for $23,222.85 for Ruth Vassar of 709 Poplar St.
Lastly, council member Tim Skalla called on the council to apply to have the Silverbrook Cemetery placed on the state's Register of Historic Places. Skalla, who is working to form the citizen group Friends of the Silverbrook Cemetery, said the move would not cost the city any more than the time needed to apply for the designation.