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Staff reports: water treatment bid delay, potential rate increases and options for paying for plant and roads
Summary
Commissioners were briefed Sept. 22 that water treatment plant bid opening was delayed to October after access concerns, that the city expects to bond for plant and road projects (staff mentioned a possible $3.5 million road bond) and that residents should expect higher water-related charges; staff discussed monthly billing, plant fees, assessments and levy changes.
City staff told the Minnetrista Planning Commission on Sept. 22 that bids for the planned water treatment plant were delayed after residents raised concerns about road access; the bid opening was moved from September to October and the city will then evaluate bids and seek council approval to award a contract.
"Your rates are gonna go up a lot," Commissioner (S6) said during the meeting while explaining the city will need to bond for the treatment plant and could pass some costs to ratepayers. Staff described several funding options under consideration: continued tiered usage rates, a monthly billing schedule to smooth bills for customers, a flat plant fee spread across users, assessments for benefited properties, or a combination of those approaches.
Staff said switching from quarterly to monthly water billing would likely require hiring one full-time employee for billing functions; staff estimated the incremental staffing cost would be small relative to the bond and that a hypothetical monthly plant fee (used as an illustrative example at the meeting) would decline as more homes connect to the system.
Commission discussion also covered whether properties not on city water can be assessed for plant costs; staff said they cannot be forced to pay for a benefit they do not receive. Commissioners discussed the advantages and drawbacks of an assessment compared with a monthly or flat plant fee.
Staff announced the city set a preliminary levy at 9.42% for 2026, citing staffing, street projects and capital needs as drivers; staff noted the preliminary levy can be adjusted downward before final adoption. The commission also heard that the city plans to bond roughly $3.5 million for road improvement projects next year and may modestly reduce the scale of major road projects in 2027.
Other informational items included personnel news (assistant administrator Paula Baumann started in August), police department training equipment (a MILO scenario-based training system) and a tentative Dec. 4 holiday tree-lighting event.
No formal action was required on these informational items; staff said they would provide more details to the Council and to residents as plans and bids are finalized.
