It was the second quarter in a row that residents will not get the rebate, a projected bonus for utility users resulting from the purchase of the wastewater treatment plant with bonds, slashing the interest rate by more than half.

The council was told at the November 21 meeting that unexpected expenses created the shortfall to allow the rebate.

Utility users have seen one such rebate: in May, the base monthly charge of $77 was only $17 due to a $20 a month calculated savings over the previous quarter. 

Terry Maas, the city’s bond consultant, said the quarter that ended September 30 showed financial improvement but not enough to cover the rebate.

The council set a policy that requires 1.5 times the revenue it needs each quarter to pay back its debt on the wastewater treatment plant it purchased in 2015. 

Mass said the last quarter the city had 1.44 times that amount, an improvement over the previous ending quarter of 1.3, but still not quite enough to allow a rebate.

Although, “This last one we did much better, were much closer to the limit,” and the city has contracted with a new operator, “The upshot is there is no rebate…”

But, Maas added, the city’s ad hoc utility committee would likely recommend a rebate next quarter because finances are improving. 

Mayor Martin Hernandez asked for clarification of why the return is still below the 1.5 benchmark to trigger rebates.

Maas said the October sewage spill and “other extraordinary items” stressed finances, and if the city is successful in being reimbursed by then-plant operator PERC, that $1 million or so cost would be returned to the enterprise fund.

The financial trend is on the upswing and Maas said, “Hopefully, we can come back” to the last council meeting in January with a recommendation for sewer customer rebates.