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Dike to pursue 6% water-rate hike after utility notices; city told of upcoming electric increase
Summary
Council voted to proceed with an ordinance raising water rates 6% (proposed $5.9572 per 1,000 gallons) effective with Feb. 2026 bills and was advised by Grundy REC that electric costs to the city will rise 9.53% in January 2026; the council also sent a letter disputing an IRUA 14% water-rate notice that it says is limited by contract to 3.1%.
At its Dec. 10 meeting the Dike City Council voted to move forward with an ordinance to increase water rates by 6% for 2026, with the change proposed to take effect on February 2026 bills. The council approved the motion on a motion by Camarata, seconded by Lynch; the proposed residential/commercial rate identified at the meeting was $5.9572 per 1,000 gallons.
Council members also heard from Mike Geerdes of Grundy REC, who told the council the REC plans to increase the rate it charges the City by 9.53% beginning January 2026. Council members said they will review current city rate schedules and continue deliberations at the January 2026 council meeting before considering city-level electric-rate changes for residents.
The Iowa Regional Utilities Association (IRUA) notified the city that it planned what the association described as a 14% increase in water rates for 2026. After discussion and reviewing the IRUA contract, council members instructed staff to send a letter to IRUA disputing the larger increase and noting that, per contract, IRUA may be limited to a 3.1% increase. Council then discussed the city water budget and options for municipal rate adjustments.
Council scheduled water-rate ordinance readings for January and set the increase to begin on February bills if the ordinance proceeds as proposed.
