Marion Water Department outlines major projects and proposes 3% rate increase

Todd Steigerwalt, general manager of the Marion Water Department, told the Marion City Council on April 7 that the department’s proposed FY27 budget is up by nearly $500,000 from last year and that staff plan to transfer $2,600,000 from cash reserves to balance revenue and expenses.

Steigerwalt outlined major capital work driving the budget: Phase 2 of the 1st Avenue reconstruction, sewer trunk projects along Central Avenue, multiple water-main abandonment projects (bids reported for South 15th Street and Brookside Drive), and a rising Lucor elevated water tower that staff expect to be filled and put into use in summer or 2027. He also reported the department’s cash balance at about $13,000,000.

On rates, Steigerwalt said the department is proposing a 3% water-rate increase and will hold a public meeting on June 9 at 4 p.m. He explained the increase is motivated by inflation and rising energy and fuel costs and showed example customer impacts: the department estimated a two-month minimum bill would rise by $0.22 and an average two-month bill (1,200 cubic feet) would rise by about $0.54.

Council members asked about the size of the reserve transfer and the department’s longer-term projects; Steigerwalt said more projects are on the horizon and that some water purchases from Cedar Rapids will increase (Cedar Rapids notified Marion of a 6% increase for water purchased for Glenbrook Cove). Several bids for local projects were noted (e.g., Rachi Construction as low bidder on Brookside Drive at $71,531).

No formal council vote was taken; the presentation concluded with staff available to return with more detail and to hold the June public meeting on rates.