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Milaca council accepts water and sewer rate study that could raise bills through 2026
Summary
The Milaca City Council accepted a water and sewer rate study Nov. 20 that recommends front‑loaded rate increases to build cash for capital work, with sample 2025 monthly bill increases of about $7.63, $14.55 and $21.50 for low, medium and high users respectively.
The Milaca City Council on Nov. 20 voted to accept a long‑range water and sewer rate study prepared by Northland Public Finance that recommends front‑loaded rate increases through 2026 to build cash reserves for capital projects such as a water‑tower rehabilitation.
Tammy Omdal, a Northland consultant, told the council the plan is intended to “prepare a plan to ensure that those funds remain in sound financial condition” and that the analysis “goes out to the 2030s.” The study proposes modest annual increases of roughly 3%–4.5% for most years but a larger increase in base rates in 2025–26 to build those balances.
Omdal provided sample monthly impacts for 2025 included in the study: a low‑volume residential user at 2,000 gallons would see an increase of about $7.63; a medium user at 6,000 gallons about $14.55; and a high user at 10,000 gallons about $21.50. The consultant said the higher, earlier increases are intended to reduce the need for larger borrowings later and to preserve pay‑as‑you‑go capacity.
Council members discussed the tradeoffs between taking on debt and raising rates now. Omdal explained that projected debt service (including existing bonds and potential PFA loans) and future capital needs drove the recommended schedule. City Manager Tammy Pfaff noted projects that could affect utility costs, including the Milaca Junction redevelopment, possible street projects tied to water and sewer work, and lead‑service‑line replacements; the city has identified 131 services listed as galvanized or unknown that could require attention and possible grant funding.
Councilor Ken Muller moved to accept the rate study; Councilor Lindsee Larsen seconded. The motion passed on a unanimous voice vote. Pfaff said any specific rate ordinances would appear on the December agenda for council action.
The council’s acceptance of the study is procedural and does not itself change customers’ bills; any formal rate increases would require subsequent council action.
