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Kettle River council approves new water and sewer rates to shore up utility funds
Summary
On Jan. 6 the Kettle River City Council voted 5-0 to raise monthly water and sewer charges after staff said the water fund lost about $12,000 and the sewer fund about $19,000 in 2024; the council also noted a long-term debt service schedule through 2042.
The Kettle River City Council voted unanimously Jan. 6 to raise monthly water and sewer charges to address operating losses and rising treatment costs.
City Administrator Kathy Lake told the council that the water fund lost about $12,000 and the sewer fund about $19,000 in 2024 and that costs to operate the water and sewer plant have increased. After discussion, Councilor Marcia Sarvela moved and Councilor Patricia Lund seconded a motion to adopt what the council called Option 2; the motion passed with all five members voting aye.
Under the new schedule the city adopted these monthly charges: water base $45.00 for the first 1,000 gallons and $10.00 per 1,000 gallons after that; a Water Debt Service charge of $33.00 per month; a Water Debt Surcharge of $0.00 per 1,000 gallons; a Wellhead Protection (WHP) fee of $0.83 per month; a Water Testing Fee (WTF) of $0.99 per month; sewer base $25.00 for the first 1,000 gallons and $10.00 per 1,000 gallons after that; and a Sewer Debt Charge of $10.00 per month.
During public comment, residents raised concerns about rates and outstanding debt. June Suomala said she attended the meeting because of the proposed increase and asked why water debt charges have been accumulating for many years. Kris Miller reiterated concerns; Kelly Dahl asked when the debt would be paid. Mayor Dave Lucas responded, “debt will be paid in 2042,” saying the obligation stems from a 50-year loan used to build the water treatment plant that was recently refinanced at a lower interest rate.
Kathy Lake told the council she had consulted Mike Bubany at David Drown Associates while preparing the rate recommendation. The council’s motion implementing the rate schedule was introduced by Councilor Sarvela, seconded by Councilor Lund, and approved 5–0 (Councilors Kohmetscher, Sarvela, Lund, Mascarenas and Mayor Lucas voting yes).
The council did not specify when the new rates will first appear on bills; staff said the city had previously held a public hearing on rates on Dec. 9, 2025 but limited attendance from poor weather prompted further discussion at the Jan. 6 meeting. The council’s action is intended to stabilize the utility funds and generate revenue for ongoing operation and debt service.
