City of New Hampton Feels Pinch of Rising Infrastructure Costs

The cost of doing business keeps going up—just ask the City of New Hampton.

Last week, Public Works Director Casey Mai addressed the City Council about the growing cost of their new waste water treatment plant (WWTP), a project that started over a decade ago.

He also noted they’re not alone, referencing neighbors to the south.

Mai said there are factors beyond their control driving the prices up.

The City is currently in line to finance the WWTP with a state revolving loan, with an interest rate of 3% for 20 years. Mai said they could consider a USDA loan for 40 years, but it would increase over costs up to 10-to-15% and delay construction by another year.

The Iowa DNR has given New Hampton until 2036 to have a new WWTP operational. 

The WWTP isn’t the only expense on the rise for the City of New Hampton. During their August 17th meeting, the Council also received word that other infrastructure projects will see increases for such things as engineering fees, higher construction costs, and unexpected soil testing and borings.

Mayor Steve Geerts said these types of developments are not unusual.

Along with those unplanned increased costs, the Council also approved payments on projects under construction, with expenditures coming to about $300,000 in all.