Wallsburg holds public hearing on proposed water-rate increases; no council vote taken

Wallsburg Town Council held a public hearing Oct. 9 to receive public comment and questions on proposed changes to the town's water rates, including an increase in the monthly base rate and higher tiered usage charges and late fees.

The proposal would raise the monthly base rate from $70 to $80 for in-town customers and to $85 for out-of-town customers, remove a separate $5 monthly maintenance fee by folding it into the base rate, increase tier 2 to $2.50 per 1,000 gallons and tier 3 to $3.00 per 1,000 gallons, and raise the late fee from $5 to $25. Town staff said the rate changes would take effect Jan. 1, 2026; the higher late fee would begin immediately when bills are issued. No formal council vote on the rate changes was taken at the public hearing.

The hearing followed an explanation from Councilmember Ron Horton about the town's long-term obligations on a water loan and the need to spread smaller increases over time. "So the reason we're doing the [increase] is we're doing a small [hike] right now," Horton said, explaining the approach of smaller adjustments to avoid a larger increase later. Horton and other councilmembers said the town faces a projected shortfall in the water fund and needs more revenue to meet loan payments and maintenance costs.

Alicia O'Driscoll, speaking during the hearing, said Wallsburg has 126 water connections and estimated average monthly receipts at about $9,450. She also said the water system recorded a roughly $25,000 shortfall in the most recent year after income and expenses, and that the town will provide detailed budget numbers on request. "I can tell you it's about $25,000 deficit from what I after all of the income and expenses," O'Driscoll said.

Residents who spoke at the hearing expressed both concern and support. Clint Allen said he supported the proposed increases as modest and preferable to infrequent large jumps: "What you guys have proposed to raise that is really very minimal and Wallsburg should stay on track to raise that, you know, every 5 years or something so that it's not such a big jump for everybody to absorb." John Hickin and other residents asked about the system's overall costs, recent project expenses and meter-read issues; councilmembers answered that the recent water project was roughly half grant and half loan, with about $3.5 million in loan proceeds, and that most meters are functioning but about 15 new meters are not yet reading reliably.

Councilmembers said the town's recent water-system replacement improved fire-flow and pressure but also created new operating and financing obligations. Horton noted the town secured a zero-interest loan from the Department of Drinking Water to help finance the system; he said the loan term remained the same but the payment amounts had been reduced compared with earlier estimates because of grant funding.

The hearing was advisory and intended to gather public comment; the council stated it would deliberate and vote on the proposal at the regular council meeting immediately following the hearing. The transcript of the public hearing shows no council decision on the water rates at the hearing itself. The meeting closed with a motion to adjourn that passed unanimously.

Votes at a glance: the only formal vote recorded in the public-hearing meeting was a motion to adjourn the public hearing and meeting, moved by Councilmember Scott Larson and seconded by Councilmember Ron Horton; the vote was unanimous among councilmembers present.

The council indicated it will review the public input and the town budget figures and consider the rate ordinance at the subsequent council meeting.