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Isanti City leaders back tiered water rates to curb high irrigation use, staff to return with proposals
Summary
City staff recommended a tiered water-rate model to reduce peak demand and delay costly capital projects tied to aquifer access; council supported proceeding with rate comparisons, a staff slideshow and targeted outreach to major users.
City staff told the Isanti City Committee of the Whole on Monday that a tiered water-rate structure could curb peak demand, push back expensive capital projects and help the city retain access to the Mount Simon Aquifer.
The presenter said this discussion was not a full rate study but sought council direction on whether to pursue tiered pricing that would keep modest increases for most households while charging substantially more for the top-consuming accounts. "So to be clear, this is not the rate study," the presenter said, asking the council for guidance before preparing a full proposal.
Why it matters: staff warned that staying in the Mount Simon Aquifer significantly reduces long-term capital needs. The presenter contrasted two unadjusted scenarios — roughly $29 million in capital needs if the city remains in Mount Simon versus about $60 million if it does not — and said reducing usage can delay or reduce those investments.
Key details: staff used July 2023 consumption as a sample month. The presenter reported that about 2,200 residential accounts used roughly 28 million gallons that month, with the top 10 percent of residential users consuming about 34 percent of residential water; the median household used about 7,400 gallons. For nonresidential accounts, 183 accounts used about 7 million gallons; the single largest nonresidential irrigation account used 551,000 gallons in the month presented.
Council discussion focused on options that would change behavior among the highest users rather than broadly penalize typical households. Council members raised private-well feasibility for large users, separate irrigation meters to avoid sewer charges, and the difficulty of enforcing usage rules. Several council members favored incentives and targeted education over a full-time enforcement function. One council member recommended mailing letters and meeting individually with the largest accounts to explore voluntary reductions.
Quotes: "Twenty percent of our residential accounts used 55 percent of the water in that category," the presenter said when describing usage concentration. On the irrigation issue the presenter said of largest users: "That's irrigation water only."
Outcome and next steps: Council signaled general support for a tiered structure and asked staff to circulate a slideshow and rate comparisons to council members. Staff also said they would prepare outreach materials for high-usage accounts and return with formal rate options after brief follow-up analysis. No formal rate changes were adopted at the meeting.
