To comply with the grant requirements of USDA Rural Development and the Minnesota Public
Facilities Authority, the City Council has approved an increase in utility rates, effective January
1, 2026. As a condition of receiving grant funding, the City was also required to accept loans
from each agency and establish a budget to support future capital infrastructure replacement.

With the utility improvement projects nearing completion, the City now faces debt obligations
that must be fulfilled. For 2026, water and wastewater debt payments will increase by $204,000.

To help offset this additional cost, the City Council has decided to implement a utility rate
increase.

Residential rate.
The monthly minimum for water will be $40.40
The monthly minimum for wastewater will be $40.40
Gallons over 2000 for water will be $10.78 per 1000 gallons
Gallons over 2000 for wastewater will be $11.95 per 1000 gallons
In addition, the utility service fee will be adjusted to $19.20 per month.
The new residential monthly minimum bill will be $100.00.

Commercial rate.
The monthly minimum for water will be $45.40
The monthly minimum for wastewater will be $45.40
Gallons over 2000 for water will be $11.86 per 1,000 gallons additional
Gallons over 2000 for sewer will be $13.15 per 1,000 gallons additional
In addition, the utility service fee will be adjusted to $19.20 per month.
The new commercial monthly minimum bill will be $110.00.

**There will be a State quarterly water testing fee of $3.81, $3.81, $3.80, and $3.80 **