River Heights council hears water-rate study that would raise monthly base by about $44
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Summary
Consultants recommended raising the monthly base water rate roughly $44 per connection — from $29.75 to about $73.75 — to fund prioritized service-line and other capital projects; council asked staff to study phased increases, reprioritization and grant options.
Consultants presented the City of River Heights with a detailed 2025 water-rate study on March 31 that recommends a substantial increase to the monthly base water charge to fund prioritized infrastructure projects.
"The increase in monthly rates for construction would be $41.12 per connection," the consultant reported, adding that operation-and-maintenance costs are projected to add $2.88 per connection, for a combined recommended increase of about $44 per month. That would raise the typical residential base from $29.75 (which includes 10,000 gallons) to roughly $73.75 per month, the presentation said.
Why it matters: city staff and consultants said the recommended rise reflects a compact list of capital work that includes prioritized water-main and service-line replacements. Staff reported roughly $466,434 in current water-fund reserves and highlighted one near-term line item: service-line replacements estimated at about $601,000. The city must submit a comprehensive inventory of service lines to state regulators by November 2027, officials said, which adds urgency to planning and funding decisions.
Consultants outlined options for the council: spread projects over more years; re-prioritize the capital list; seek state and federal matching grants (including Bureau of Reclamation and CIB opportunities), or consider bonding. One consultant noted that some grant programs look for water rates in the $90-$100-per-connection range to qualify, which complicates trade-offs between securing outside funding and minimizing immediate rate impacts on residents.
Council reaction and next steps: council members expressed concern about the magnitude of the jump and its effect on residential bills. Mayor Blake Riot and other members suggested staff should re-run scenarios that phase increases over multiple years and explore reprioritizing projects and grant opportunities to soften immediate impacts. Council directed city staff and consultants to return with revised prioritization and funding options.
The technical presentation and spreadsheets shared with council show multi-year projections of reserves under the proposed increase and several alternative phasing options; the council did not vote on the proposed rates at the March 31 meeting and asked staff to return with refined recommendations.