After rejecting a $40 million bond issue for sewer improvements in 2024, Ashland residents may have to pay substantially more money for their wastewater.
Despite that no vote at the polls last year, the city is proceeding with plans to improve the sewer system. City leaders are now considering increasing sewer service rates to offset the cost of upgrading their facilities.
The average monthly bill is $52.65, according to study conducted for the city in March. If the new water rates are approved, the average bill could go up to $64.76 in fiscal year 2026, $79.65 in 2027 and $97.97 in 2028.
The proposal would help the city fine-tune the rates, which were already raised by 23% in May. Customers who are more conservative with their water usage can expect savings under the new plan, City Administrator Kyle Michel said.
The Ashland Board of Aldermen will meet at 6 p.m. Tuesday at City Hall, 101 W. Broadway to consider the changes. The city will hold a public hearing and vote on the new rates, and also will vote on a proposed ordinance to issue up to $28 million in bonds for the upgrades.
Despite the project’s guaranteed maximum price of $22.7 million, Michel said the project may end up in the $25 million to $28 million range due to borrowing costs.
The facility processes 575,000 gallons of wastewater a day, and up to 600,000 during heavy rains. The Missouri Department of Natural Resources only permits the plant to process 600,000 gallons a day, meaning expansion would be necessary to stay in compliance.
Construction began in May to expand the facility’s capacity from 600,000 gallons to 1.6 million gallons a day. Michel also said redundancies were being added in to keep the plant operational if some parts break or are damaged.
The city administrator said the upgrades should meet community needs for the next 20-30 years.
“The true benefit to the residents is that they’ll continue to be able to flush the toilet at the end of the day,” Michel said. “Obviously, as we continue to grow, this will help with meeting the needs of future growth within the community as well.”
If passed, these new rates would begin Oct. 1. Fixed rates based on water meter size would decrease, while the variable water rates based on gallons used would almost double by fiscal year 2028.
According to a study by PFM Financial Advisors, 63% of Ashland customers use between 1,000 and 5,000 gallons of water a month. Ninety-eight percent of residents have a 5/8-inch water meter.
Funding challenges
The project has faced many funding hurdles. Because the subsidized bond issue failed, the city began working on a plan that ultimately could raise rates by 23% in May 2025, 2026 and 2027.
The state legislature approved $11 million for Ashland’s sewer system upgrades in the spring, but Gov. Mike Kehoe vetoed the funding in late June. The state funding would have offset some of the rate increases for citizens.
The project will be wrapped up and operational by May, Michel said.
For more information, including project updates, visit https://ashlandmo.us/294/Wastewater-Treatment-Facility-Expansion.
