City holds hearing on proposed sewer rate hike, OKs 5-year Capital Improvement Plan

ST. JOSEPH, Mo. (News-Press NOW) -- The City Council Chamber was largely quiet on Monday as St. Joseph held a public hearing on proposed sewer rate increases that could occur in 2025 and 2026. 

Community members were invited to participate in the public hearing that preceded Monday’s City Council meeting.

St. Joseph resident Steve Jones was the lone person to speak out against the plan, arguing that more increases for residents are not warranted. 

“You’re not going to get another tax increase approved through the voters, so therefore we’re going to get into our residents pockets,” he said. 

The city is considering a gradual two-phase proposal that would increase monthly sewer rates by 3% in both 2025 and 2026, with the first increase taking effect July 1, 2025, and the second by mid-2026.

If approved, the average monthly sewer bill would increase from $65.70 currently to $67.55, and again to $69.50 by mid-2026. A final vote on the new rate structure could occur at the next City Council meeting on June 23 after Monday's first reading.

The proposal comes after council members were presented with the results of an annual sewer rate study conducted by Burns & McDonnell during a work session in late May.

Residents have seen frequent and at times significant rate increases since 2009 as the city continues the process of meeting the demands of keeping its aging sewer system in compliance with regulations mandated by the EPA and Missouri DNR. Nearly 60% of the city's combined sewer system was installed before 1920.

Since 2013, the city has spent $250 million on required improvements to its sewer system, including the Blacksnake Creek and Whitehead separation projects.

Estimates are that another $300 million in improvements still need to be made under current regulatory guidelines, costs that continue to rise with inflation. In an effort to control those costs as much as possible, city officials have been able to work with state and federal agencies on a new integrated plan that will spread the necessary improvements over a longer period until 2050, instead of 2035.  

"We would like to be able to prioritize what those projects are instead of letting the DNR and the EPA dictate what it is that we're going to do. So we're working closely with them and that's what this integrated plan does," Public Works Director Abe Forney said. "The biggest part is so we don't have to continue to to have massive increase in sewer rates."

St. Joseph’s current sewer rates are not out of line with those of other older river towns in the Midwest, including Omaha, Nebraska ($60.12) and Kansas City, Missouri ($79.01).

City Council approves Capital Improvements Program for 2027-2031

Monday’s meeting also saw council members OK a resolution laying out the city’s five year capital improvement program for fiscal years 2026/2027 through 2030/2031. 

The upcoming CIP planning period includes projects totaling $115,473,593. Projects have been scheduled in five major categories as follows:

• Equipment Acquisition/Upgrade/Replacement: $14,676,001
• Vehicle Acquisition/Upgrade/Replacement: $516,760
• Public Buildings Repair/Renovation/Construction: $24,497,471
• Roads/Bridges/Hike & Bike Trails: $28,767,000
• Other Public Infrastructure Improvements: $47,016,36

Council supports bonds for Daily Premium Meats expansion 

Councilmembers signed off on a resolution of intent to issue $60 million in taxable industrial development revenue bonds to finance a significant expansion project for Daily’s Premium Meats, LLC, located on Stockyards Expressway. 

The total cost of the expansion is $95 million and the project will create 115 new jobs. The city has offered an economic development incentive package to ensure the project happens in St. Joseph. 

When all is said and done, St. Joseph, Missouri, will produce 5% of the bacon in the United States.

Part of the incentive package involves utilizing the Chapter 100 program to provide tax abatement on $60 million in new equipment related to the expansion. The Company would receive 100% abatement on all personal property taxes years one and two, 75% years three to five, and 50% abatement years six to 10. 

Approval of this resolution allows the company to move forward with plans for the expansion in St. Joseph and to purchase the related new equipment. Further approval by City Council will be required through an ordinance upon completion of the project to receive approval by City Council to issue bonds associated with the final cost of the project. The City of St Joseph is not responsible or liable for the debt associated with this Bond Issuance.

Other bills approved by City Council

Change order for additional work on the Civic Arena restroom renovations project in the amount of $106,467 with E.L. Crawford Construction Inc.

Amendment to the Special Allocation Fund budget in the amount of $2.8 million and the execution of a work order with Transystems Corporation for the Cook Road improvements project in the amount of $275,975.00. 

An amendment to recognize revenues awarded from the St. Joseph, Missouri and Buchanan County, Missouri, opioid settlement fund and authorizing the purchase of first responder training equipment both in the amount of $5,432.95 for life-saving measures during emergency responses.