International Falls water customers should expect their rates to increase in January and again later in 2012 as the International Falls City Council attempts to bring water rates in line with budget needs and conform to conservation rates required by the state.
The proposed interim rate, planned to take effect Jan. 1, calls for a $2 monthly increase for the minimum in-town rate and a $3.48 monthly increase for the minimum out-of-town rate. Other water rates are also expected to increase. Sewer rates are not included in the proposal and will remain at the same rate.
The council is seeking input about the proposed rate increase from water users at the Dec. 5 meeting, with action on the interim rate expected at the Dec. 19 meeting.
Councilor Cynthia Jaksa, who leads the city’s Finance and Legislation Committee, said the proposed interim minimum rate is in line with what other communities are charging for water.
The interim rate increase is also needed to help the city maintain a fund that provides money to repair and improve its aging water system and structure, said Public Utilities Director Gary Skallman.
Skallman said a study is expected to be conducted as the council considers setting the conservation rates.
Public water suppliers serving more than 1,000 people are required by state law to adopt a water rate structure that encourages conservation. According to the Minnesota Department of Natural Resources, metropolitan suppliers had to set a conservation rate structure by Jan. 1, 2010. All other suppliers must set a rate structure by Jan. 1, 2013.
The conservation rate must be based on the amount of water used in the lower usage months, said Skallman.
Like most communities, the amount of water International Falls sells is decreasing as a result of more efficient appliances while the cost to operate the system, including the costs of chemicals for the treatment plant, are increasing.
Skallman said the city sold 310 million gallons of water in 1996 and 210 million gallons this year, representing a 30 percent decrease.
Questions from the audience Monday prompted Skallman to provide information about the Boise paper mill water use. He said 11.2 percent of the city’s water sales go to industrial users, with Boise making up about 10 percent of that amount and purchasing about 21 million gallons per year for its potable water use. The mill uses its own water in the papermaking process.
Falls Mayor Shawn Mason said the city has no large-consumer rate. Skallman added that all water users will experience the proposed rate increase should the council adopt it, and added that industrial users receive no special rate.
“There is one price structure, except for wholesalers,” he explained.
In other business Monday, the council heard a final season report on the fight on blight from Kelly Meyers, building inspector. Meyers told the council that seven garages, four homes, and two homes with garages were demolished though the city’s demolition program. Two more garages may be demolished this season, and paperwork on four other structures is yet to be completed.
