Mayor asks council to pay off debt on sewage-treatment plant, saying it would lead to rate cut of at least 25%

By Sarah Ladd

University of Kentucky School of Journalism and Media

Ahead of Monday’s city council meeting, Midway Mayor Grayson Vandegrift announced his intention to ask the council to pay off the city’s active wastewater treatment plant to allow lower sewer fees for water customers. 

Vandegrift would do that by cashing in one of the city’s three certificates of deposit, which total $473,483. That would leave CDs totaling $276,598.

Vandegrift told the council in a letter on Wednesday that the funds would be applied to the remaining balance on the wastewater plant, now $196,885. He said the city pays $60,000 a year on the loan, in two $30,000 installments, plus $9,000 in interest and “other services.”  He said the city would have an extra $9,000 in sewer revenue each month, leading to “lowering sewer rates for our citizens”

The next step, he explained, would be “letting the sewer fund build up some revenue for a few months,” then make some projections. “Once we feel that our sewer fund is sufficiently increased, I would then ask you . . . to vote on lowering sewer rates at least 25 percent, to begin with.” Sewer fees are based on water usage.

Vandegrift noted that the city recently paid off the old sewer plant, which had to be replaced before the bond issue used to build it was retired.

The CD that the mayor wants to cash in is worth $285,490. The remaining $88,605 after paying off the treatment plant would be rolled into a new CD, he said.

“Our current financial position is so healthy that I see no reason why we should continue to pay interest on a debt we are able to pay off,” he added. “Cutting sewer rates will help make Midway a city that is more affordable for everyone, and will be a major step in fixing one of Midway’s longest running problems.”

The council meeting is scheduled for Monday, July 16 at 5:30 p.m. at City Hall. All council meetings are open to the public.