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River Heights council weighs Forsgren study that would more than double base water rate
Summary
City staff presented a Forsgren water-rate study recommending a $44 monthly increase in the residential base rate (from $29.75 to $73.75); councilmembers and staff disagreed on size and timing of any increase and postponed a final decision pending engineer review and public outreach.
Mayor Blake Wright and city staff on April 21 reviewed a Forsgren water-rate study that recommends raising the city's base monthly residential water rate from $29.75 to $73.75, an increase of $44 per connection, to fund planned capital improvements and operations through 2035.
The study, prepared for River Heights and reviewed in the council workshop, spreads proposed water projects and associated operating-cost increases across nine years and divides them by an expected average of 820 connections. The memo notes construction inflation (3% annually) and a 6% allowance for local wage inflation when estimating future O&M costs. It recommends implementing new rates by July 2026 with appropriate public involvement and council approval.
Public Works Director Clayten Nelson told the council he did not support a $44 jump in the base rate and suggested the city consider increasing overage charges first. "I certainly didn't support a $44 increase," Nelson said. He and Councilmember Janet Mathews planned a follow-up meeting the next day with Engineer Rasmussen to refine which projects should be prioritized before the council acts.
Mayor Wright asked whether the council also wanted to raise property taxes this year; council members agreed that additional general-fund revenue will be necessary to cover rising employee benefits and other costs. Wright later said he would propose a 75% increase in the property tax levy as one option, though the record also contains earlier references to a 60%–100% range discussed during the workshop.
Treasurer Michelle Jensen urged the council to rely on Forsgren's analysis after the city paid for the study. Councilmembers emphasized the need to inform residents before adopting any rate or tax changes.
Next steps: staff will meet with Engineer Rasmussen and Mathews to produce a refined recommendation; the council signaled it will pursue public outreach before any formal vote on a rate or tax increase.
