Wahpeton council directs draft of two-year water rate increase after $3 million hybrid plan

The Wahpeton City Council on Feb. 10 directed City Attorney Hemphill to draft a two-year water rate increase ordinance after municipal advisor Tim Oswald of Piper Sandler presented a financing plan that would apply $3,000,000 to reduce project debt. Councilmember Holly Mead made the motion to direct the attorney to prepare the ordinance; Merlyn Kruger seconded and the motion passed unanimously.

Oswald reviewed a hybrid option he drafted that would use $3 million to pay down the water project, lowering the amount of new debt the city would need to issue and the portion of costs that would otherwise be recovered through higher water rates or increased property taxes. The council’s instruction to draft ordinance language included a specific direction to include a 200% rate increase for accounts located outside Wahpeton city limits.

Council members framed the vote as a procedural step to provide staff and the city attorney with direction to produce ordinance language for formal consideration. The council did not adopt any rate change at the meeting; the action approved was limited to directing the attorney to draft an ordinance. Any future ordinance would return for council consideration, public notice and, if required, a public hearing.

The council’s financial ledger in the same packet showed total revenues from Jan. 1–31, 2025 of $536,648.66 and total expenses of $791,372.30; the claims/payment listings include large line items related to water plant work (for example, HR Green invoices listed under water treatment and WTP improvements). Those financial figures appeared in the council’s consent materials and were part of the fiscal context discussed as the council considered funding options.

Next steps: City Attorney Hemphill will draft the two-year ordinance for council review; the council has not yet scheduled a hearing or adoption vote for the ordinance.