RANIER – The Ranier City Council Monday agreed to amend a sewer ordinance that will bring a significant increase to monthly sewer rates for residences in Old Ranier beginning Jan. 1.

Sewer rates will jump almost five times the current amount of $7 per month to $34 for the first 2,000 gallons used monthly for each residence in Old Ranier.

“This does not include the French and Jameson Addition,” Mayor Ed Oerichbauer said.

According to Oerichbauer, Old Ranier is serviced by North Koochiching Area Sewer District and because of the additions and upgrades to the sewer plant, adjustments for expenditures are necessary to cover costs for the infrastructure, which are distributed to customers.

Ranier City Clerk Kim Nuthak said a letter from Tim “Chopper” McBride, director of NKASD, said sewer rates to the city of Ranier increased by 2 percent for 2013. Also, because of the renovations to the sewer plant, the city will be charged an additional $9,450 annually.

Nuthak said the 2 percent increase is based on a five-year average of Ranier’s sewage use. She said there are 90 sewer customers in Old Ranier and the increase was divided equally among them.

“It’s a big jump,” Oerichbauer said of the increase, adding it wasn’t the best way to start 2013.

The mayor explained because residences in the newly annexed portions of Ranier are serviced by East Koochiching Sanitary Sewer District, it is unknown if rates will increase.

According to the ordinance, each additional 1,000 gallons or any portion of 1,000 gallons used will stay at $2.45.

The council also held its annual Truth in Taxation hearing prior to the regular council meeting Monday. The group agreed to keep the tax levy at $140,000 – the same amount that was collected this year.

In September, the council set its preliminary 2013 levy at $150,000 — about a 7 percent increase from what was collected from property owners this year.

Oerichbauer told The Journal in September, even though the council set the levy for $10,000 more than was collected in 2012, he expected when the levy is finalized in December that taxes will not increase.

Oerichbauer said the increased levy should not cause a rise in property taxes in 2013 because the levy will be spread out over more properties as a result of annexation, which brought into the city limits additional residences.

The council approved a 2.2 percent wage increase to staff, which raised questions from resident Thomas Hall at the conclusion of the meeting.

Hall said he didn’t understand why the council was giving a raise to employees when they are increasing sewer rates.

“We’re all tightening our belts,” he said. “The money needs to stop somewhere.”

Oerichbauer briefly addressed Hall’s concern by noting it wasn’t the council’s choice to bring on the sewer rate increase.

Monday’s meeting ended on an emotional note as Nuthak thanked outgoing councilmembers John Walls and Dan Klocek and Oerichbauer for their time served on the council.

“I appreciate you all and we’ve had a great team,” she said. “I’m really going to miss you guys.”

Oerichbauer, Walls, and Klocek did not seek reelection in November.