Cameron Schweiss, of Archer-Elgin, updated the Cuba Board of Aldermen on May 19 on the Silo Ridge development regarding increasing water and sewer rates.

“We undertook a task order last year to look at the city’s water and sewer rates and make some recommendations, kind of based on estimated population growth, estimated expenses and kind of that list of capital improvement projects,” Schweiss said.

Municipal Advisor Chris Collier, of Northland Securities, Inc., said phase one is estimated to cost about $500,000, and the city has already paid about $300,000 out of pocket, which can be reimbursed back to the city. Phase two is estimated at $1.3 million.

Schweiss added that phases three and four have been identified as long-term improvements, including wastewater treatment plant rehabilitation, but also possibly upgrading due to potential population growth.

He said that they expect 60 cents per $1 collected will go back into the system in the form of personnel, electricity and operating costs.

He added that they ran some scenarios when it came to recommending increases in water and sewer rates. The top scenario was a 7 percent annual increase over a five-to-seven-year period, which is about a $4 monthly increase in the first year for water and sewer combined.

This would lead to about $100,000 in additional gross revenue, to be spread out to go back into the system, but Collier also suggested using it to build up city reserves.

A motion for an annual step rate increase of 7 percent per year, to be implemented starting June 30 through 2033, with an annual review for both water and sewer services, was approved with a 5-0 vote.

Collier discussed funding for phases one and two of the Silo Ridge development by McBride Homes.

“Bonds will be issued at the end of this year, or maybe at the beginning of next year, depending on the timing of different things,” Collier said.

He also updated the board on the city’s outstanding debt.

“The only real outstanding debt that the city has right now is a bond issue, series 2011 bond issue that was passed,” Collier said.

It has a 1.6 percent interest rate and is expected to be paid off by 2031.

In other business, a motion to increase the natural gas rates to $1.45 per thousand cubic feet was approved with a 5-0 vote to make it align more with cities in the surrounding area.

To help fund the Airport Hangar Project, a motion to use Special Ordinance 949 was approved with a 5-0 vote. This ordinance allows the mayor to authorize an Airport Infrastructure Grant Agreement — using nonprimary entitlement (NPE) and Bipartisan Infrastructure Law-Airport Infrastructure Grant (BIL AIG) funds — for the project’s grant application.