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Omaha City Council debates streetcar funding on Tuesday

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OMAHA, Neb. (KMTV) — The Omaha City Council held a marathon session that stretched into the evening on Tuesday.

It started by hearing from those arguing for and against bond money to get the street car project underway.

Mayor Jean Stothert made the first presentation saying that because of development along the route, the street car will pay for itself.

MUD came to the meeting in favor of the street car, but says it will cost the utility about $20 million it hasn't bargained for.

“If our customers are forced to pick this cost up our estimates would be a one-year water rate increase and this would be on top of what would be approved tomorrow by our board of directors. A one-year water rate increase of up to 18 to 19 percent and a gas rate increase of six percent,” Mark Mendenhall, MUD senior vice president, general counsel.

The mayor's office responded to that by saying MUD hasn't given them any documentation that backs up a $20 million price tag and that they've offered a plan to MUD while wanting to work together to avoid a rate increase.

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