The utility board adopted a petition asking the city council to consider a rate increase for the use of the city sewer system, said Samme L. Gee of Jackson Kelley.
The amendment to the original 2005 ordinance proposes a two-phase rate increase.
The first phase is an 11.5 percent increase that will become effective in February 2013. It covers the increases in operational costs that have occurred since the last rate increase.
The second portion is a 7 percent increase that would take effect one year after the first rate increase and will be used to cover a project under consideration by the utility board.
"The first increase is to meet our bond rating and the second increase is to do these projects," Mayor Dave Casebolt said.
The proposed project will extend sewer services to Blakes Creek and Eastwood Acres, adding 95 new customers, said Jessie Parker with S&S Engineering. The aging Pump Station No. 8 will be replaced, and new equipment, such as a sewer cleaner, dump truck and backhoe will be purchased.
The funds will also cover emergency work on Pump Station No. 8, which is the major pump station near Pilot Truck Stop that receives flows from Nitro and former Rock Branch PSD areas.
The estimated cost is $8,350,000, and will be financed by the state Department of Environmental Protection's Clean Water Revolving Fund for 20 years at 3 percent interest.
"We anticipate being completed by August 2015," Parker said.
The ordinance also provides for a security deposit to be assessed by the utility board to cover costs if a customer moves and does not pay his or her final bill.