Robins News

The Robins City Council has recently approved an increase to sewer utility rates. We recognize that any increase in household expenses is significant, and we want to explain why this action was necessary and how it will help protect the City’s financial future while continuing to invest in critical infrastructure.

Sewer rates in Robins have remained unchanged at $32.50 per month since 2019. During that same period, the costs associated with operating, maintaining, and improving the City’s sewer system have increased substantially. Because sewer rates have not kept pace with these rising costs, the utility has only been able to barely break even in recent years with infrastructure maintenance costs.

Many residents may not realize that the City’s sewer rate structure was originally designed to increase over time. City Ordinances provide for annual sewer rate adjustments of approximately six percent per year. However, those annual increases were only authorized through 2019 and were never extended beyond that date.

The newly approved rate is based on applying those previously authorized annual adjustments year-over-year from 2019 to today. Had those increases continued as originally intended, the current monthly sewer fee would be approximately $49.13 per month. In many respects, the current rate increase serves as a correction to bring sewer utility revenues back in line with what the City’s rate structure anticipated.

At the same time, Robins faces significant future infrastructure obligations. The City continues to participate in the Indian Creek Sewer Improvements Project, a regional partnership involving the City of Cedar Rapids, the City of Marion, the City of Hiawatha, the City of Robins, and Linn County. This project is essential to maintaining and improving wastewater infrastructure throughout the region.

To date, three segments of the project have been completed. However, approximately seventeen (17) additional segments remain, with an estimated future cost to the City of Robins, for the next five (5) segments alone, of approximately $12 million over the coming years.

Historically, Robins has financed its share of these improvements through General Obligation (GO) Bonds. While effective, GO Bond debt is repaid through the City’s Debt Service property tax levy, meaning the costs are ultimately passed along to residents through property taxes.

The City has another financing option available through the State Revolving Fund (SRF), a program specifically designed to help communities finance infrastructure improvements. SRF financing offers several advantages, including lower interest rates, and longer repayment terms.

However, eligibility for SRF financing requires the City to demonstrate that its sewer utility generates sufficient revenue not only to cover operating expenses, but also to support future loan repayments. Without adequate utility revenues, the City would not qualify for this lower-cost financing option.

Over the course of several months, the City Council worked closely with the City’s financial advisor to evaluate multiple approaches to addressing this issue. Plans with a smaller initial increase would not have generated sufficient revenue to qualify for SRF financing in time for the next anticipated segment of the Indian Creek Sewer Project.. While there exist options that meet the City’s revenue goals more quickly, they would have resulted in significantly larger initial increases than the Council believed were reasonable for residents.

The plan the Council ultimately selected provides a balance between the City’s financial needs and affordability for residents. While it includes an initial rate correction, it also establishes a path of more moderate annual adjustments moving forward.

Looking ahead, there is good news. Within the next two years, the City of Robins expects to transition to a wholesale water utility model with the City of Cedar Rapids. This transition will allow sewer charges to be based on actual water usage rather than the current flat monthly sewer fee. As a result, residents will ultimately pay sewer charges that more accurately reflect their household’s usage.

The City Council understands that rate increases are never popular, and this decision was not made lightly. However, maintaining reliable infrastructure, preparing for major future sewer improvements, and positioning the City to utilize lower-cost financing options are critical to protecting the long-term financial health of our community.

Thank you for your understanding and continued support as we invest in the future of Robins’ infrastructure.