(Spirit Lake)– Spirit Lake water users got a peak at proposed rate changes last (Thurs.) evening.
The Howard R. Green Engineering firm says significant increases are necessary to keep the city’s water department solvent. Public Works Director Todd Dolphin says one reason was significant work at the water treatment plant to meet federal mandates. Another is for a new million gallon-plus water tower to keep up with Spirit Lake’s explosive growth.
The new fees would about double over three years. For a family of four using five thousand gallons of water a month the rate would jump from about 21 dollars a month to 32 dollars beginning in August; 39 dollars next year; and 42 dollars in 2007. The city of Orleans buys its water from Spirit Lake and is charged 33 percent more than Spirit Lake residents.
There have been no rate increases in nine years.
With the rate increase and no unforeseen expenses at the treatment plant the water department could have about 491 thousand dollars in its reserve fund by 2007. At the current rate it would be 2.7 million dollars in the hole.
Sewer rates were also part of the study. The recommendation is to raise the monthly rate from $1.93 a month to $2.40 in August; $2.80 in 2006 and $3.30 in 2007. With those rates Howard R. Green estimates the city can build up a reserve of 334-thousand dollars by 2007. Without it the sewer department would be 27-thousand dollars in debt.
Both fee increases go to the Spirit Lake city council later this month for their consideration.
