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Baxter council approves two-step water rate increase citing wholesale vendor changes
Summary
The Baxter City Council adopted Resolution 2026-02 to raise water rates 3% on Feb. 1, 2026, and an additional 3% on July 1, 2026, with a reassessment set for Sept. 2026; council cited wholesale vendor IRUA’s decision to build its own facility after splitting with the City of Newton.
The Baxter City Council on Jan. 12 adopted Resolution 2026-02 to increase water rates by 3% effective Feb. 1, 2026, and by another 3% effective July 1, 2026, and directed staff to reassess rates in September 2026 to determine any additional changes effective Jan. 1, 2027.
Councilmember Milligan moved to adopt the resolution; Bethards seconded and the motion passed with ayes from Bethards, Churchill, Milligan, Schabilion and Smith. In presenting the resolution, council members linked the increases to Baxter’s wholesale water vendor, IA Regional Utilities Association (IRUA), raising rates after deciding to construct its own facility following its split with the City of Newton.
The council recorded this as a policy decision to maintain water-service revenue in light of increased wholesale costs. The resolution sets clear effective dates for the two-step increase and schedules a September 2026 review to determine whether further action is required.
