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Isanti staff urges base fee hike, new high-usage tier to shore up water system funding
Summary
City staff told the Isanti City Council Committee that water and sewer funds face long-term shortfalls and recommended a $2 increase to the water base rate in year one plus a new fourth usage tier to discourage excessive irrigation and generate stable revenue.
City staff on Wednesday laid out a multi-decade water and sewer rate plan that includes a recommended $2 increase to the monthly water base rate in year one and the addition of a fourth, conservation-oriented top usage tier. The presentation framed the changes as necessary to finance near-term capital work, including a new well, and to avoid pushing costs onto future residents.
The utility presentation, given after the committee reconvened from recess, compared Isanti’s rates with nearby cities and walked the council through multiple financial scenarios. The presenter said long-term planning is essential because Isanti’s small customer base increases per-user costs and that “if you want utility rates to be lower, the best way to do that is to be bigger” so the city can gain economies of scale. He warned that…
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