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River Heights reviews water‑rate study proposing $44 monthly increase
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Summary
City engineers presented a Forsgren water‑rate study recommending a $44 monthly base‑rate increase per connection to fund $4.1 million of water projects through 2035; the council requested reprioritization and exploration of grants before any rate adoption.
Engineers Marianne Reiner, P.E., and Craig Rasmussen of Forsgren presented the River Heights water‑rate study and recommended a $44 per‑connection monthly increase to build reserves and finance roughly $4.1 million in capital projects from 2026–2035.
The study, prepared for the city, modeled 10 prioritized projects including service‑line replacements, a new emergency generator at the lower well house and multiple main replacements. Forsgren’s memo and presentation said the recommended $44/month increase (raising the typical single‑family base from $29.75 to $73.75 inside the city) consists of about $41.12/month for capital repayment and $2.88/month for increased operation and maintenance costs. The study used an average 820 connections for its calculations and noted projected growth through 2035.
Councilmembers raised concerns about rate impacts and asked staff and the consultants to re‑examine project prioritization and possible grant matches before finalizing a rate change. Public Works Director Clayten Nelson told the council the state requires cities to inventory every service line and that River Heights currently has around 100 unknown service lines; he noted that replacement work done while lines are exposed could be more cost‑effective. Reiner said the study assumed certain reserves (the memo cites $466,434 in water‑fund reserves) and that reserves could be used as local match for grants.
Councilmember Janet Mathews and others pressed the consultants on whether the timeline and chosen priorities could be adjusted to reduce the immediate rate impact on residents. Rasmussen recommended educating residents about the need for investment in water infrastructure and suggested the council could lower the proposed level of service if it chose to. No formal rate change was adopted at the meeting; the council directed staff and the consultants to work on reprioritization and to return with recommendations.
What happens next: the council asked staff (Forsgren plus Public Works and finance) to review the project prioritization and grant opportunities and report back; any ordinance or rate resolution to implement a change would return to the council for formal action.