Operation costs behind proposed sewer rate increase

After 12 years, Le Mars could see an increase in wastewater rates across the board.

Le Mars City Council members presented information Tuesday from a rate study recently completed by Bolton & Menk, Inc., of Ames.

The study found that city residents and business owners' rates would need to increase for the wastewater department to continue operations.

"We've seen a declining fund balance," said Bill Cole, assistant city administrator. "The (wastewater user) rates are designed to offset any increase in payroll costs or operation costs."

The rate change, if approved, would mean an average homeowner would pay about $3.15 more on their monthly bills, Cole said.

Each wastewater user pays a minimum base rate, which is currently $6.25 per 1,000 gallons. The proposed new base rate would be $7.72 per 1,000 gallons.

For each 1,000 gallons after that the current rate of $1.55 would increase to $1.83.

"The sewer rates haven't been changed since 1996," Cole said. "Having not raised sewer rates for 12 years, we got to a position where we had to recommend an increase."

It's not the residents, but the big users like Wells' Dairy and Dean Foods that will see the "largest dollar increase," Cole said.

The council's first reading to change the wastewater rate was Tuesday, it will have the second and third readings on Dec. 16 and Jan. 6 respectively.

If the proposed rate change is approved, it would go into effect Feb. 1.