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Commission adopts fee changes for water and sewer tied to loan eligibility
Summary
The commission approved Resolution 2025-07 raising the water base rate and per‑thousand‑gallon overage and increasing the sewer rate to support eligibility for a low-rate loan and strengthen aging enterprise funds.
The Lead City Commission approved Resolution 2025‑07 on May 19, raising several municipal utility fees to support upcoming water and sewer projects and improve the financial health of utility enterprise funds.
Robin, the city administrator, told the commission the water base rate will increase from $33.75 to $35 and the charge per thousand gallons over the base would rise from $3.65 to $5. She said the adjustments were necessary to meet the criteria for a State Revolving Fund (SRF) loan for the Douglas Supply Line Project; if the city’s combined water rate equals $45 per 5,000 gallons it would qualify for a disadvantaged-rate SRF loan at 2.5% interest for 20 years. Robin described the SRF reference in staff materials and the need to align rates with loan application calculations.
The commission also approved an increase in the sewer monthly rate from $11 to $16 — the first sewer-rate increase since about 2012, staff said — to address a deteriorated sewer fund. Staff reported the sewer enterprise fund was roughly negative $17,000 and noted capital needs including failing brick manholes, clay pipe in poor condition, and the need for emergency shutoff and curb-top improvements.
A minor correction to parking-violation fines (raising a $20 typo to $25) was included in the resolution. Commissioners discussed the importance of maintaining enterprise funds at sustainable levels to preserve eligibility for grants and loans and to fund essential maintenance and capital projects.
The resolution passed unanimously on voice vote. Staff said the adjustments are intended to stabilize utility finances and strengthen future grant and loan applications; commissioners asked staff to incorporate the changes into customer notices and future grant applications.
