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North St. Paul staff reaffirm north tower plan, say 6% utility rate increases would fund 2029 replacement
Summary
City staff told the council a 6% rate schedule for water-related funds beginning in 2027 would cover the planned north water tower project in 2029; staff referenced a 2019–2020 tower siting study that recommended rebuilding next to the existing tower to address a storage shortfall.
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City staff described the planned north water tower project and told the council the recommended financing plan would cover the work without a general-tax levy increase beyond the proposed levy package.
Dan, the finance director, and Ron (staff) said the north tower project, currently scheduled for 2029 in the CIP, addresses a long-standing storage-capacity shortfall. Staff referred to a 2019–2020 tower siting study that evaluated alternatives and concluded the most feasible solution would be to rebuild adjacent to the current north tower, keep the old tower in service while building the new one, and then remove the old tower when the new structure is operational. Staff noted this option affects park space and playground equipment at Tower Park but was recommended based on cost and available real estate.
Asked whether a 6% increase in water-related funds would fully fund the tower, Dan said yes and added that the water-rate schedule in the CIP is designed to cover the project. A staff estimate discussed during the meeting suggested that a full rehabilitation of an existing tower could be on the order of $1.3 million to $1.5 million if the project were a rehab rather than a replacement; staff presented that figure as a rough, attributable estimate.
Staff also reviewed other utility-infrastructure items: well rehabs, ongoing meter-replacement planning, and the water-meter program that staff said will begin phased replacements around 2027 because many meters have batteries and radios with a roughly 20-year life cycle. Ron said the meter program will likely be phased by neighborhood and could require outside contractors to complete installation and radio linking for meters with internal components.
Council members clarified the north tower location (between 13th and 14th avenues, north of the high school) and asked staff to keep park impacts and aesthetics in mind; staff confirmed the CIP cost estimates do not include aesthetic treatments.

