Public hearings Monday, Nov. 6 for increased water and electric rates in Willmar, Minnesota

Jennifer Kotila, West Central Tribune, Willmar, Minn.
·3 min read

Nov. 4—WILLMAR

— The Willmar City Council on Monday, Nov. 6, will host two public hearings — one calling for a 20% increase in water rates for 2024 and the other calling for a 5% increase in electric rates in 2024. The meeting takes place at 6:30 p.m. in the boardroom at the Kandiyohi County Health and Human Services building.

Other items on the agenda include the consideration of liquor licenses for Foxhole Brewhouse, Intuition Brewing and Willmar Indoor Golf and Cages; awarding the bid for the Municipal Airport drain tile installation; and approving applying for Local Road Improvement Program funds to assist in paying for improvement to Business Highway 71.

The water rate adjustments are needed due to the water main costs associated with the city of Willmar's 10-year street capital improvement plan and the northwest water treatment plant, which will result in a $400,000 shortfall in the

Willmar Municipal Utilities

budget, according to the memo attached to the council agenda.

"A water rate study was conducted and accepted by the (Willmar Municipal Utilities) Commission on July 5, 2022. The suggested water rate adjustments proposed were a 20% increase in 2023, 2024 and 2025, and a 5% increase in 2026. When the bids for the project came in $3.5 million below the engineer's estimate, a new financial plan model was created reducing the suggested rate adjustments in the rate study from 20% to 5% in 2024. However, the city's 10-year street capital improvement plan and bond interest anticipated at 4% to 4.5% for the northwest water treatment plan, the original 20% increase in 2024 is required to be implemented," the memo stated.

Water rates will increase 4% in 2025 and 3% in 2026.

The rate increase impact on residential customers is based on 720 cubic feet per month of water usage — those customers currently pay approximately $37 during the non-summer rate months and approximately $42 during summer rates.

With the 20% increase in 2024, the increase in those customers' monthly water bills will be approximately $7.31 during non-summer months and $8.33 during summer months. Their increases in 2025 will be approximately $1.75 and $2 per month, and in 2026 the increases will be approximately $1.36 and $1.56, according to the memo.

The average resident water bill in 2026, based on using 720 cubic feet of water per month, will be approximately $47 during non-summer months and approximately $54 during summer months.

WMU last increased electric rates in 2015 and, in order to keep the system reliable, a rate adjustment is required due to increasing operating and capital improvement costs, according to the memo in the Council agenda packet.

The proposed increase is 5% in 2024, and WMU is considering conducting a rate study in 2024 to identify future needs and rate structures.

The rate increase impact on residential customers is based on 1,000 kilowatt-hours per month.

During non-summer months, the average 2023 monthly electric bill for WMU customers was approximately $126. During summer months, the average monthly bill was $141.

The proposed increase would increase the non-summer month bills by approximately $6.31 per month and the summer month bills by approximately $7.05 per month, for a total monthly electric bill of approximately $132.54 during non-summer months and $148.05 in summer months.