The Poplar Bluff City Council will vote May 15 on a project to demolish the former Second Street city hall complex, as well as proposed water and sewer rate increases.
City officials hope to begin demolition of the former city complex at the corner of Second and Oak streets by the end of the year. It once housed the police department, Municipal Court and city hall, but has been vacant since 2018, when the last of those departments were relocated due to deterioration of the building.
Poplar Bluff has been awarded a $306,000 grant to cover 50% of the costs to demolish the former city hall and police department complex, according to city officials.
Among the first steps in that project is contracting for grant administrative services. The city received one bid, for $12,000 from Ozark Foothills Regional Planning Commission, for the services.
The grant was awarded by the Department of Economic Development as part of a proposal to create a green space. It is part of $100 million in funds allocated to the DED’s Community Revitalization Grant Program.
Next, the city will need to update reports regarding asbestos in the building, said city manager Matt Winters. An engineer will also be hired, before demolition can begin, which Winters believes will start before the end of the year.
The grant administrative services item will move to the May 15 voting session of the council, when they will also take up proposed rate increases for the water and sewer services.
Rate increases
Rates for water and sewer services would increase over the next five years as part of an agreement tied to bond obligations used to improve the water and sewer systems, Municipal Utilities General Manager Bill Bach told council members.
If approved, the monthly rate for the average residential water services would go from $25.39 currently to $35.78 by 2027. The rates for residential sewer services would increase from $28 currently to $35.55 by 2027. These estimates are based on an average usage of 4,500 gallons per month.
Rates would increase annually until reaching the final amount in the fifth year.
Rates for commercial and industrial users will see the same percentage increase for both services, Bach said. Water rates would increase by just under 41% by 2027, and sewer rates by almost 27%.
The increases are based on a cost of service and rate design study completed recently by Utility Financial Solutions, Bach told council members.
“The proposed rate track will bring us into compliance with revenue bond requirements,” he said.
Voters approved bonds in 2008 for the water department and in 2012 for the sewer department to make improvements to treatment facilities.
These bonds come from the State Revolving Fund and require the city’s rates to cover “all expenses, debt ration, minimum cash reserves and optimal operating income,” Bach said. Ward 5 representative Robert Smith questioned the amount of the rate increases, describing them as large and expressing concern some residents would struggle with the cost.
Bach said the per month rate increase for sewer services would be only $1.36 in the first year, if approved. Per month rate increases for water customers will be $2.79.
“We have to ensure we keep the system operational,” he said.
At-large council member Mark Massingham asked when was the last time the rates had been increased.
It’s been approximately 11 years, Bach said, also sharing rates for Pike Creek were around $45 per month in response to other questions from council members.
The base water and sewer costs are for per 1,000 gallons of usage. The current base rate is $12.43 for water and would go to $18.50 by 2027. The current base rate for sewer is $14.50 and would go to $20.25 by 2027.
Customers are charged per 1,000 gallons of service after the base rate.
This cost would increase from $2.88 per 1,000 gallons for water services to $3.84 by 2027.
The cost would increase from $3 per 1,000 gallons for sewer services to $3.40 by 2027.
The proposed schedule increase for average usage of 4,500 gallons per month is:
Water
Current, $25.39; 2023, $28.18; 2024, $31.31; 2025, $32.73; 2026, $34.24; and 2027, $35.78.
Sewer
Current, $28; 2023, $29.36; 2024, $30.77; 2025, $32.33; 2026,$33.94; and 2027, $35.55.
In other business, the council also discussed:
• A bid for approximately $14,000 to restore the roof at Fire Station 3. Four bids were received, with three being in budget, but only one bidder responded to requests for proof of performance bond and references, said fire Chief Mike Moffitt. The bidder was Summit Commercial Roofing. This item moves to the May 15 voting session.
• Discussed a change order for the Industrial Park Infrastructure Project, related to construction at the True Manufacturing site. The change order extends the deadline until the end of May for contractors to wrap up work delayed by weather, Winters said. The project is substantially complete, he said.
• Discussed the destruction of antiquated police department records.
• Discussed a grant application to the Delta Regional Authority to update the city’s comprehensive plan.
• Approved a change order related to stormwater drainage improvements.
• Approved planning and engineering consultants for future projects at Poplar Bluff Regional Business Airport.
• Approved a bid to purchase recycled plastic tables and benches for the Black River Coliseum Aquatic and Fitness Center.
• Selected an engineering firm for a stormwater improvement project.
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