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River Heights council leans toward phased water-rate hikes, approves MWPP survey and advances tentative budget work
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Summary
At a lengthy budget workshop April 21, council members discussed options to raise water rates (a phased approach favored), approved the municipal wastewater planning program survey (amended to 2025), and reviewed capital-project priorities including a well generator, mower, truck and tennis-court resurfacing.
River Heights staff and council spent most of their April 21 workshop weighing how to close operating gaps and fund capital needs, with water rates and the city tentative budget at the center of discussion.
Mayor Blake Wright and Treasurer Michelle Jensen framed the choice between a large single-year water-rate increase recommended in a consultant’s study (an illustrative jump from roughly $29.75 to $73.75 monthly base) and a more gradual, multi-year approach. Several council members and public works director Clayton Nelson recommended phasing increases—an example plan discussed was three annual 33% increases—while also adjusting overage charges to encourage conservation during a drought year and to smooth the rate increase for residents.
The council also approved, without recorded opposition, the municipal wastewater planning program (MWPP) survey for 2025 after an amendment to the motion on the floor; the motion was made and amended during the meeting. Michelle Jensen said the MWPP document is an annual requirement to maintain eligibility for state funds and to document whether the city experienced sanitary-sewer backups; staff recommended approval as largely fact-based and unchanged from prior years.
On capital needs, councilors reviewed an informal project wishlist that includes (estimates discussed in workshop): a mower (~$15,000), tennis-court resurfacing (~$40,000), a larger truck and snowplow (estimates varied; shared-cost options discussed with county), and a generator for a lower well (staff referenced an estimate in a water study). Jensen reported combined water and sewer reserves of roughly $1.6 million and suggested a modest drawdown could finance high-priority projects while maintaining prudent reserve targets.
Council asked staff to return with firmer vendor quotes, legal and budget implications for any rate choices, and clear public messaging on why rate or tax changes are necessary.
The workshop concluded with staff’s preliminary tally showing proposed revenues of about $2.00 million, expenditures of roughly $1.88 million and a working surplus near $124,000, subject to final reconciliation of invoices and April receipts.