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Gaylord considers tiered water rates and a base increase; council seeks notice for major users
Summary
The council discussed a proposed 3% baseline water-rate increase plus a tiered structure that would raise rates more steeply for very high users. Members cited the city's extra water infrastructure costs and recommended staff notify major users, including Michael Foods, before a formal vote.
Councilors discussed a draft tiered water-rate proposal intended to rebalance charges so heavier users pay more of system costs.
Steve presented a four-tier structure using the existing per-thousand-gallon rate as a baseline and proposed a 3% across-the-board increase with larger percentage steps for higher tiers. Councilor discussion ranged from modest tier increases to a suggested 7.5% per tier to recover costs related to large users and infrastructure (council members observed Gaylord carries extra water-tower and plant costs for the community).
Council members raised contract questions affecting Michael Foods, a major industrial water user, and asked staff and the city attorney to confirm contract language and the mechanics of applying the tiered matrix to contracted rates. Mark (counsel) said the contract allows for increases that correspond to community-wide rate changes and that staff intends to adjust Michael Foods’ contracted rate consistent with any community-wide tier changes.
Several councilors asked that staff give major nonresidential users advance notice and invite them to a meeting before any formal vote so facilities are aware of the potential financial impact. Staff will return with a formal proposal in January and additional legal review.
No formal rate increase was adopted at the meeting; council gave staff direction to refine the schedule and outreach plan.
