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home : government : government June 25, 2016

12/13/2012 10:51:00 AM
Hikes for sewer and water passed

by Ken Haggerty

The Cannon Falls City Council approved rate hikes of 2.5 percent for water, 10 percent for sewer and 10 percent for storm water fees at its December 4 meeting.

The water fund benefited from better than budgeted water use in 2012, attributed in part to the very dry year and increased watering. The water fund was also recipient of a transfer of $25,000 from the general fund reserves, a move taken by the Council to help soften the steady rate increases seen in recent years and that are anticipated for future years.

All the funds have been seeing increases in an effort to get them to be self-supporting by users of "true costs" and to get them to a level where the funds can make 100 percent of annual debt service payments and have enough in reserves to cover 50 percent of projected expenses, said Reeves.

Council member LeRoy McCusker said the true cost of water users is probably over estimated because the City overbuilt the water system in anticipation of residential growth that never came.

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