North Oaks reviews plan for unified water and sewer rates; public hearing set for June

Jeanne, a representative of Ehlers Financial, presented a utility rate study to the North Oaks City Council on May 14 recommending a single, unified rate structure for water and sewer service that would apply to customers on both the Shoreview and White Bear Township sides of the community.

The study proposes a quarterly water base fee of $72.41 to cover fixed costs and a three-tiered residential consumption schedule: $3.94 per 1,000 gallons for 0–20,000; $5.91 per 1,000 gallons for 20,000–90,000; and $8.87 per 1,000 gallons for usage above 90,000. Commercial accounts would use a two-tier structure and irrigation-only meters would be billed at $7.85 per 1,000 gallons. For sewer, the recommended structure would combine a $50.14 base charge with a consumption component based on a customer’s winter average and a $84 treatment assumption for sewer-only customers.

The consultant said the design aims to ensure the base fee covers 100% of fixed costs while consumption charges cover variable costs, to promote conservation and to make bills easier to administer and explain. Ehlers reported the city’s funds are in generally good shape but noted capital needs could arise in the coming years; the recommended rates include small buffers (the presentation notes a ~0.7–1.1% buffer in projections).

Councilors asked for details on impacts to different user groups. Ehlers’ analysis projects median household water bills would fall for many Shoreview customers while sewer charges would increase modestly; White Bear Township customers’ median bills would fall slightly for combined water and sewer, though some top users could see increases. The presentation included quartile-based impact tables and a comparison of existing and proposed quarterly charges.

Administrator Kevin Kress said staff will return to the Council in June with a public hearing and recommended implementation timing so new rates could be reflected in 2Q–4Q 2026 utility invoices if approved. Kress cautioned that while no capital projects are included in the immediate recommendation, future lift station or infrastructure work could change revenue needs.

The Council did not vote to adopt rates at the May 14 meeting; it voted to schedule further consideration and a public hearing in June. The matter will return to the Council for formal action after that hearing.