Posted: 11/15/07
Rate increases on the agenda in Rush City
By Patrick Tepoorten
According to Rush City Administrator Amy Mell, it is likely the Rush City Council will make a decision to increase water and sewer rates, perhaps as much as 25 percent and 20 percent respectively, at its next meeting, Nov. 26.
The proposed rate increases are the result of a completed rate study by Northland Securities, which was presented to the City Council at a special meeting on Nov. 7.
The move to increase water and sewer rates comes as part of the city's effort to produce funds enough to cover its $400,000 annual Public Facilities Authority (PFA) loan payment without having to levy for the entire shortfall.
Mell expects that, if approved, the increases will be phased in over a two-year period and could affect usage costs as early as January of 2008.
Also on the horizon is the possibility of an "I and I" (inflow and infiltration) surcharge of $4 to $5 dollars a month for single family residential properties, although a decision on that is not expected at the Nov. 26 meeting.
The city is currently exploring the possibility of higher surcharges for multi-family, commercial, and industrial properties.
The surcharge could be used toward paying for voluntary I and I inspections, paying a percentage of private repairs, the purchase of equipment needed to make repairs, and paying for the city to make I and I repairs to public facilities.
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