Edina approves first reading of fourth water‑rate tier to target highest residential users

The Edina City Council voted March 3 to approve on first reading ordinance 2026‑06, creating a fourth residential water‑use tier that would apply to quarterly usage above 72,000 gallons. The ordinance was accompanied by a staff recommendation and a proposed effective date of May 1 to influence summer watering behavior.

Nick Anhut of Ehlers presented the analysis supporting the new tier, explaining the structure targets the highest 10% of residential volume and recommending a rate roughly 24–25% above the existing tier‑3 price for incremental consumption: "The proposed tier 4 … represents about 10% of residential usage," he said, and staff estimated the change would generate about $200,000 in additional revenue for the utility fund under current assumptions.

Council members questioned distributional effects and communications. One council member called the incremental percentages “daunting” and cautioned the change could feel punitive for affected households; another argued that higher users impose greater capital and operating costs and that a tiered system is equitable because it allocates cost to those placing the greatest demand on infrastructure.

Council approved the ordinance on first reading and authorized summary publication; staff will return with any necessary additional data and continue to monitor usage patterns and rates in subsequent budget cycles.

Next steps: ordinance 2026‑06 will be published in summary form and staff will track usage and evaluate the tier’s effects during the coming watering season.