Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Utilities topic
No spam. Unsubscribe anytime.
Pelican Rapids council adopts 2026 water and sewer rates to rebuild reserves
Summary
The Pelican Rapids City Council on Nov. 25 adopted its 2026 water and sewer budgets and rate resolution, raising sewer flow charges from $5.85 to $6.85 per 1,000 gallons and passing through a higher MDH fee that slightly increases the monthly water charge.
The Pelican Rapids City Council on Nov. 25 adopted Resolution 2025‑24 setting next year’s water and sewer charges after staff outlined proposed budget changes and capital needs.
Finance presenter Danielle told the council the sewer budget includes planned repairs and maintenance — lift‑station work, clarifier and digester cleaning, sludge hauling and a $12,000 lagoon‑fence repair — and recommended increasing the sewer flow charge from $5.85 to $6.85 per 1,000 gallons to help restore restricted reserves. Danielle said the adjustments would generate “about $130,000” to begin rebuilding the fund balance the city must keep for PFA requirements.
On the water side, staff proposed holding the $17 base rate but passing through an increase in the Minnesota Department of Health connection fee (from roughly $0.81 to $1.27 per month), which raises the apparent monthly water charge from about $17.81 to $18.27. Staff also flagged one‑time and recurring water costs: an estimated $30,000 rehab/inspection on a well, up to $4,000 to clean a water tower interior and $15,000 to update the wellhead protection plan with a consultant.
Council members and staff discussed the assumptions behind the rate study, including a 3% operating‑expense escalation and the city’s goal to meet the PFA required capital set‑aside. Lance, who assisted on the presentation, noted that some costs (for example, sludge hauling) vary year to year and are budgeted conservatively.
After discussion the council voted to adopt the resolution setting the 2026 water and sewer charges and budgets. The resolution lists the new sewer flow rate of $6.85 per 1,000 gallons and the water monthly charges that reflect the higher MDH fee.
The resolution adoption is the latest step in a multiyear effort by Pelican Rapids to replenish restricted funds and keep utility systems funded for planned capital work. The council scheduled routine follow‑up through the budget committee and through staff reports to monitor capital expenditures and reserve rebuilding.
