Le Mars city sewer rates are expected to increase for residential and industrial users.

The Le Mars City Council will hold a first reading of a new ordinance initiating the rate changes Dec. 2.

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The rate hike, effective Feb. 1, 2009, is projected at 20 percent for residential users and a corresponding 5 percent increase for industrial users.

For the "typical" residential user, this translates into about a $2 monthly rate increase from $15.55 to $18.70, according to a recent rate analysis.

Wells' Dairy will, under this scenario, see a current "typical" monthly bill of $85,100 increase to $89,300.

Dean Foods will face an increase from the current monthly charge of $34,300 to a charge of $36,700.

The new rate structure comes following a rate analysis by Bolton & Menk, Inc., Ames, on the current rate structure and analysis of the residential and industrial users.

The study points out the rate schedule was last adjusted in 1996 and that since that time, several "significant changes" have taken place signaling a necessary rate increase.

The changes, as stated in the analysis report, include construction of the $2.5 million household storage lagoon, biosolids pipeline and wastewater treatment facilities in 2004 and wastewater treatment facility improvements totaling $6.2 million in 2005.

Also impacting the present operation have been the transfer (without transfer of operating budget funding) of the collection system and maintenance responsibilities from the street department to the water treatment facility, and a "significant increase" in industrial wastewater loading from Wells' Dairy and Dean Foods.

The $1.4 million in revenue from these two firms accounts for the major share of the department's current revenue figure of $2.3 million. The overall increase in annual revenue from 2005 through 2007 is 83.9 percent.

Current operational expense and debt service for 2007 is shown at $2.5 million, up 79.7 percent from the 2005 level. Volume billing for the same two-year period has increased from 499 million gallons to 683 million gallons.

There is also, the study notes, the "potential increase" in present billing volumes at present, "unknown," from what the analysis states is "the planned purchase of the (former) Harkers' facility by Beef Products, Inc. (BPI), Dakota Dunes.