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International Falls council approves first reading of ordinance adding water treatment-plant debt-service fee
Summary
The City Council approved on first reading an ordinance that adds a separate debt-service charge to water bills to cover an estimated $850,000 annual debt for a water treatment-plant rehabilitation; the measure passed 4–1 and requires a second reading to become law.
The City of International Falls City Council on first reading approved an ordinance that adds a new, separate debt-service fee on water bills to cover rehabilitation of the city’s water treatment plant. The council voted 4–1 after a presentation by Northland Securities and consultants explaining the proposed rate structure and estimated debt service.
Tammy Bridal of Northland Securities told the council the updated utility study shows a “total estimated debt service, annual debt service is approximately $850,000,” an estimate that Northland said would be final after the loan closes and the city draws down on the authorized loan. Bridal explained the council seeks to add a distinct line item on monthly bills so customers can see charges directly linked to debt service for the plant rather than folding the increase into existing percentage-based fees.
Mayor Marin introduced the ordinance and the outside presenters, noting the council previously voted to proceed with the plant rehabilitation and that the debt obligation will exist whether or not the new fee is adopted. Councilor Wagner moved to approve first reading and Councilor Kaler seconded. Mayor Marin said he planned to vote no, and the motion passed on first reading, 4–1.
City staff and Northland described the technical structure: the ordinance pairs modest percentage increases to the existing fee schedule (a roughly 3% increase from 2025 to 2026 and another 3% from 2026 to 2027, intended to cover operations and PayGo capital) with a new flat, nonvarying debt-service charge for single-family residential customers and a tiered volume charge for commercial and multifamily accounts above 3,000 gallons. Finance staff said the separate debt-service rate is intended to be transparent and dedicated solely to paying the debt associated with the treatment-plant rehabilitation.
Finance staff also told the council they would continue to pursue state bonding to reduce the local impact and that the two-year rate schedule allows the city to gather more historical flow data and adjust as needed. The ordinance approved tonight is the first of two votes required under the city’s ordinance process; a second reading is needed for final adoption.
The most recent procedural step is the first-reading approval; staff and consultants remain available to answer questions and the council will schedule the second reading at a future meeting.
