Council adopts 4% sewer rate increase to cover debt service and reserves
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Summary
The City Council approved a 4% increase to wastewater (sewer) rates effective in February to cover inflation, maintain reserves and help pay debt service tied to the West Central Biosolids project; staff estimated roughly $98,000 in additional annual revenue and an average residential impact of $1.41.
The New Richmond City Council adopted a 4% increase in sewer rates, citing inflationary pressures, debt-service obligations tied to the West Central Biosolids project and a need to maintain reserve levels required by the city's debt covenants.
City staff noted the increase was drawn from an updated sewer rate study (2018 study and a 2022 update) and presented an estimated additional $98,000 in annual revenue resulting from the 4% increase. Staff said the average residential customer would see an impact of about $1.41 per billing period and that the new rates were proposed to take effect in February if the council approved the resolution.
Council members asked whether sewer rates were regulated by the state Public Service Commission; staff clarified that the city's sewer utility is nonregulated and that rate changes require utility-commission review and a council resolution rather than PSC approval. Council members also discussed how the increase fits within longer-term capital needs for the wastewater treatment plant, with staff explaining that the current 4% increase covers recent upgrades (phase one at West Central Biosolids) and reserve maintenance but does not fund larger future capital improvements.
The council approved the resolution on a roll-call vote.
Next step: staff will implement the adjusted rate schedule and reflect changes in the February billing cycle and in the 2026 budget documents.