IRON RIVER—By 4-1 votes at its April 23 meeting, the Iron River City Council approved increasing its sewer rate by $1 and a flat rate of $2 for the West Iron County Sewer Authority (WICSA), raising the city’s utility bill from $28 to $31.

The council has held a couple of meetings on the need to increase the rates and, although reluctant to do so, felt there was no other option.

The $1 increase for sewer rates is part of the city’s plan to seek a low-interest loan from the state for a $2.2 million sewer project to bring the city into compliance with a mandated Administrative Consent Order (ACO) with the Department of Environmental Quality (DEQ) to bring the city’s system to a point of handling a 25-year storm (3.75 inches of rain in a 24-hour period).

The city has not adjusted the sewer rate for four years and the increase would help the city in renegotiating its current consent order to gain the necessary “enforcement points” to qualify for the low-interest state loan.

Obtaining the 2.5 percent loan from the state would require a $145,000 annual payment for 20 years and would not require an additional rate increase to fund the project. The other alternative is to seek a loan through Rural Development at a 4.5 percent interest rate for 40 years.

At a special meeting on April 16, the council voiced its reluctance for any increase because of the burden it would be creating for residents. Both the city’s sewer rate increase and the anticipated 6 percent increase from WICSA were on the agenda at that meeting.

“No matter what we do, it’s never enough,” Councilman Ray Coates noted at the April 16 meeting regarding projects already completed during the past several years to comply with the DEQ’s consent order.

“They’re going to be mad at you and very mad at me,” City Manager John Archocosky told Coates. “We’re all going to take the heat for something we can’t control.”

The approved $2 rate increase for WICSA includes 15 cents for the debt and $1.85 OMR (operations, maintenance and repairs). The commodity rate (over 4,000 gallons) will increase by 65 cents per thousand gallons.

At the April 23 meeting, Coates asked that if WICSA’s upcoming budget does not include that 6 percent increase, if the city could “revisit” its decision for that $2 increase.

“Yes,” said Archocosky. “MDEQ, we cannot. WICSA, yes, and we’ll know probably in a couple of months.

Archocosky said the city was told to plan on a 6 percent increase.

“It’s important that everyone understand… these increases for WICSA and the DEQ, is way out of our control. So, basically, MDEQ mandated their increase to us, and none of this increase will go into the city’s sewer operating fund,” said Archocosky.

Voting against both increases was Councilman Roger Zanon.

The rates go into effect with the July 1 bill.

An application for financing for Central School was approved by the state’s housing development authority (MSHDA), reported Tim Hunnicutt of Hovey Companies, updating the council on the status of that project.

“That says a lot about your community,” said Hunnicutt, adding that the city’s Cool Cities designation, along with support from the Downtown Development Authority (DDA) and the City Council have been important in the project’s continuation.

However, the status of the project is now rests on the clean-up of a contaminated site before his company can proceed with developing the former school into an 18-unit apartment complex, which he believes would be not be a problem to fill.

“There is not a huge need,” said Hunnicutt about the housing units, “but we’re talking 18, not 180.”

Hovey Companies is also working on the Crystal Manor project, he said, “and we have twice as many people on the waiting list as we have units… I don’t see any problem renting out 18 units.”

With talk focused on the Central School project, DDA Chairman Jim Gibula presented a modified TIF and development plan to the council for its approval. The DDA is seeking to extend its downtown TIF district to 2043 in order to secure long-term bonding to support both the Central School and the streetscape projects.

Special invitations to other tax entities will be required as well as a public hearing before the plan can be adopted.

West Iron County student Joseph Hommel wants to set up a concession business at Bachman Park and will work with the city manager and city attorney on his plans’ feasibility.

Hommel, a WICHS junior, told the council he plans to attend college for business and is interested in running a concession stand at the park as well as sponsoring some skateboard competitions.

“I think it’s a good idea, myself,” said Coates.

Archocosky said his only concern was liability. City Attorney Mark Tousignant noted that the city policy has required proof of insurance.

“We’ve done that with other individuals,” he said.

Resident Lisa Spikings voiced concern about a neighboring property that is becoming a safety issue. Part of the property in question belongs to the city, but the city had given a license to the adjacent property owner to keep his storage shed there, as he has mowed the grass on that site for a number of years.

Following Spikings comments, the council motioned to give the property owner 14 days to clean up the property or it will revoke the license, which was granted in August 2004.

Councilman Zanon was appointed by Mayor Charlotte Soderbloom to the city’s Brownfield Authority.

In other action, the council:

--approved the request from the Rodeo Committee to close off a section of the downtown area for a street dance during Rodeo weekend.

--set Wednesday, May 21, for a public hearing on the budget. The meeting will be held at 1:45 p.m., prior to the regular meeting

--approved a request by the Iron Range Firefighters Association to use Bachman Park on July 19 for a baseball benefit for burned-out victims.

--approved the request by the West Iron County Booster Club for a liquor license for June 21. (Councilman Tom Beber, a member of the Booster Club, abstained in vote.)