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Long Prairie Council hears $3.5 million water-system update, approves 10-year rate study
Summary
Engineering firm Bolton & Menk told the Long Prairie City Council the water-system scope has grown to about $3.5 million. The council approved a not-to-exceed $19,500 contract with Ehlers Financial to conduct a 10-year water utility rate study and acknowledged a financial management plan.
Mayor Jim Kreemer and city staff heard an update from Bolton & Menk on Nov. 26 that the scope and cost of Long Prairie’s water-system work — including water-tower rehabilitation and supporting upgrades tied to recently completed generator work — have grown to roughly $3.5 million. Bolton & Menk said the city has applied for a $300,000 electrical-component grant that is pending and that federal funding actions were temporarily paused by a government shutdown.
Todd, a presenter with Ehlers Financial, outlined a proposed 10-year water utility rate study designed to align rates with projected capital needs and required cash reserves. The study will model rate-setting scenarios, use and reserve targets, and recommended approaches to meet the utility’s anticipated capital obligations.
Council Member Lilah Gripne moved and Council Member Clint Krueger seconded approval to hire Ehlers Financial to conduct the water utility rate study for a fee not to exceed $19,500. The motion passed unanimously.
In a separate presentation, Ehlers reviewed a 2025 Financial Management Plan recommending a formal minimum fund-balance policy and consideration of levying directly to capital revenue funds (fire, police and similar) rather than solely through the general fund. Mayor Jim Kreemer moved to acknowledge the plan and to add a Fund Balance Policy to the next agenda; the council unanimously approved the procedural step.
City Engineer Kent Louwagie also briefed the council on related system work and lead-service-line inventory results: the city reported 1,162 total water services, with 669 public-side unknowns (down from 851 last year), 303 private-side unknowns (down from 528), three confirmed lead services and 41 galvanized lines requiring replacement. Louwagie said additional rounds of data collection and potential excavation funding may follow.
The next steps the council approved were moving ahead with the Ehlers rate study and continuing engineering work and grant coordination. The city will return with the Fund Balance Policy for formal consideration at a future meeting.
