Council approves phased sewer-rate increases to fund regional project

The Goodhue City Council voted to adopt a three-year phased increase in sewer rates designed to help fund the city’s share of a regional sewer project. Council members discussed alternatives ranging from modest annual increments to larger, front-loaded increases and settled on a phased plan described in the motion as $5 added in year one, a cumulative $10 in year two, and a cumulative $15 in year three.

Supporters said the phased approach signals to funding partners that the city is building necessary reserves and reduces the chance of a steep, disruptive jump for residents later. "We need to show the state that we are in fact saving money for this project," one council member said, noting that being part of the four-community regional plan reduces the city's outright cost compared with building a stand-alone plant. Opponents and some members urged sensitivity to residents on fixed incomes and called for robust public communication about timing and impacts.

The motion to adopt the phased schedule carried after discussion. Council members asked staff to share details with residents — through bills, the city website, and public outreach — so households can plan for the increases. The council also noted that if other grant or bonding outcomes change, the future rate path may be revisited.

Next steps: staff will publish a customer notice explaining the phase schedule and timing, reflect the adopted increases in the utility billing system, and continue to pursue grant and bonding opportunities for the regional project.