Background and Agreements
In September 2017, Sarpy County, alongside the cities of Bellevue, Gretna, La Vista, Papillion, and Springfield, approved an Interlocal Agreement to establish the Sarpy County and Sarpy Cities Wastewater Agency (SCCWWA). This agency is tasked with constructing the Unified Southern Sarpy Wastewater System, a comprehensive sanitary sewer system designed to serve the southern portion of Sarpy County.
Key Agreements and Developments
- September 7, 2021: The City signed an Interlocal Agreement with SCCWWA concerning land rights, wastewater system construction, development, treatment plant decommissioning, and wastewater service and connection. This agreement was approved at the September 7, 2021, Springfield City Council meeting. Click HERE to read those minutes.
- November 20, 2024: SCCWWA approved the Master Plan of development of sanitary sewer system infrastructure. The Master Plan was approved at the January 21, 2025, Springfield City Council meeting. Click HERE to read those minutes.
- December 3, 2024: The City entered into a Connection and Wastewater Service Agreement with SCCWWA. This agreement was approved at the December 3, 2024, Springfield City Council meeting. Click HERE to read those minutes.
This multi-phase, multi-year project is expected to facilitate development in southern Sarpy County by channeling wastewater to Omaha’s existing treatment facility near Bellevue, thus negating the need for SCCWWA to build a new treatment facility.
Transition to SCCWWA System
Once Springfield connects to SCCWWA’s system, the city’s existing treatment plant property will become SCCWWA's property and SCCWWA will decommission the plant at their expense.
In return, Springfield will receive additional park property on the north side of town. This property was acquired by SCCWWA during their acquisition of easements for the trunk sewer line. The city plans to prepare a park master plan for this area, along with the soccer complex and adjacent Springfield Creek Trails & Recreation Area.
Springfield's sewer flows are scheduled to begin flowing to SCCWWA by Spring 2025. Even though the city will no longer be operating the wastewater treatment plant, the city will still retain ownership of and continue to operate and maintain the city's sewer collection system. The city's sewer collection system is comprised of all sewer mains (i.e. those lines underneath city streets) that serve as the physical connection between property service lines and SCCWWA's system.
Rationale for Connection
After extensive research, the city concluded that connecting to SCCWWA’s regional wastewater system was in its best interest due to the following factors:
- The city’s existing treatment plant is more than 50 years old and operating at full capacity, with the ability to treat a maximum of 250,000 gallons of wastewater per day.
- Updates to meet future federal treatment requirements are prohibitively expensive and would cost millions of dollars.
- Constructing a new plant with increased capacity would have significantly increased costs (e.g., approximately $22 million in 2024 dollars for a plant capable of treating 1,000,000 gallons per day).
- Annual bond payments for $22 million in principal would have been over $1,600,000 a year for 20 years. This amount does not include operation and maintenance costs. This cost burden could not be passed on to the city’s 825 utility customers. Sewer rates would have needed to be more than $170 per month just to cover the bond payment. Realistically, rates would have been much higher in order for the city to maintain and operate the new system as well as the existing collection system and administer billing.
Financial Implications
- SCCWWA Sewer Fees: Springfield will be a wholesale customer of SCCWWA, remitting the following monthly sewer fees to them:
- FY24/25: $10.81 per 1,000 gallons of sewer
- FY25/26: $11.36 per 1,000 gallons of sewer
- FY26/27: $11.95 per 1,000 gallons of sewer
- Connection Fee: The city must pay SCCWWA a one-time connection fee of $200 per existing connection (825 connections totaling $165,000, payable over five years).
- Construction Costs: The city is responsible for an estimated $900,000 construction cost to connect to SCCWWA's system. The city will issue a sewer revenue bond to cover this cost over a 20-year term. Money collected by the city from sewer bills will be used to make bond principal and interest payments.
What Does This Mean for You?
As Springfield transitions to the SCCWWA wastewater system, there will be changes to your sewer rates. Here’s what you can expect:
Current Sewer Rates - Inside City Limits
- Base Monthly Fee: $32.00
- Usage Fee: $4.50 per 1,000 gallons of usage, calculated annually based on water consumption during the months of December, January, and February
Current Sewer Rates - Outside City Limits (SIDs of Southcrest Hills II, Springfield Pines, Springfield Commerce)
- Base Monthly Fee: $48.00
- Usage Fee: $6.75 per 1,000 gallons of usage, calculated annually based on water consumption during the months of December, January, and February
New Sewer Rates - New sewer rates reflect the wholesale costs from SCCWWA and the city’s ongoing responsibility for its sewer collection system and billing. The updated rates are designed to cover the increased expenses associated with the connection and ongoing collaboration with SCCWWA.
New Sewer Rates - Inside City Limits
- Base Monthly Fee: $50.00
- Usage Fee: $6.00 per 1,000 gallons of usage, calculated annually based on water consumption during the months of December, January, and February
New Sewer Rates - Outside City Limits (SIDs of Southcrest Hills II, Springfield Pines, Springfield Commerce)
- Base Monthly Fee: $75.00
- Usage Fee: $9.00 per 1,000 gallons of usage, calculated annually based on water consumption during the months of December, January, and February
New rates begin on the April 15 water/sewer bill.
Why Do SIDs Pay 1 ½ Times for Water & Sewer Service?
Sanitary Improvement Districts (SIDs) are a mechanism used by developers in the State of Nebraska, particularly in the metro area, to help finance new residential or commercial subdivisions. Nebraska State Statute allows cities like Springfield to enter into a contract to sell water and sewer service to persons beyond the corporate limits of the city when, in the judgment of the Mayor and City Council, it is beneficial to such city to do so.
Property owners within an SID do not pay city property taxes rather they pay property taxes directly to the SID in which they live. Since SID property owners don’t contribute towards city property taxes, they are charged extra for water and sewer rates because city property taxpayers pay for many “extra” expenses associated with running the water and sewer departments that are not specifically listed as expenditures under the water and sewer budgets. Examples of these expenses include building space (i.e. City Hall and the maintenance shop), utilities for those buildings, website fees, printers, office supplies, wages/benefits from other city employees who are paid out of other funds but still work on water and sewer projects, and a variety of other items.
Wrap-Up
These sewer rate changes aim to ensure that Springfield can sustainably manage its wastewater needs while keeping costs as fair and manageable as possible for residents. By partnering with SCCWWA, Springfield aims to ensure sustainable development and cost-effective wastewater management. We appreciate your understanding as we manage this transition.
For more information on the Sarpy County and Cities Wastewater Agency, click HERE to visit their website.
#Small town, big heart.
