City to consider water rate hike

In the coming months, city commissioners in New Rockford will consider a rate increase for the city's water.

The topic was brought up for discussion at their regular meeting on Monday, Dec. 2, when commissioners were informed by City Auditor Andrew Presnell that the city's water fund has now been operating at a deficit for two years.

That's a problem for the city not only because of the obvious financial implications, but also due to a $4.7 million loan and $4.5 million grant they received from the U.S. Department of Agriculture (USDA) in 2020.

Those funds paid for much of the recent upgrades to New Rockford's water treatment plant, and as a condition of receiving those funds the USDA requires the city to submit a balanced water budget every year.

This time a year ago, Presnell said nearly $90,000 had to be transferred from the general fund in order to balance the water fund, and at the December meeting this year they had to transfer approximately $57,000.

The deficit shrank thanks to a change in the city's chemical supplier, but Presnell said the deficit isn't likely to keep shrinking unless action is taken, and city officials seemed to agree that a rate hike is overdue.

"We've gotta do something," said City Attorney Travis Peterson. "Do we all dislike it? Yes we do. However, that's part of living in a civilized society."

Commission President Stu Richter added that rates have needed to increase for some time, but they've held off until now due to the water issues many residents experienced following the water treatment plant renovations.

Presnell said the USDA required the city to complete a rate study after learning New Rockford was operating at such a large deficit, and commissioners reviewed the results of that study during Monday's meeting.

Additionally, Presnell said he compared New Rockford's water rates to other cities in rural North Dakota, showing that their rates are actually lower than many other cities of similar size.

Currently, New Rockford's minimum charge for water – which is charged regardless of how many gallons a resident uses – is just $20.25.

Meanwhile, the usage rate in New Rockford is $3.50 per 1,000 gallons, although that rate doesn't kick in until after a resident uses 1,000 gallons.

In other words, the minimum charge for water pays for a resident's first 1,000 gallons in a month, and every 1,000 gallons used after that comes at a cost of $3.50.

That's relatively low when compared to other nearby cities, such as Cooperstown which has a minimum charge of $29.75 and a usage rate of $4.75 per 1,000 gallons.

Carrington, meanwhile, has a $24 minimum charge and a usage rate of $6.50 per 1,000 gallons, and in Langdon their water rates are $27 and $3.81 per 1,000 gallons. Several more cities are listed for comparison in a graphic on page 1.

Looking at the comparisons, commissioners noted that they have among the lowest water rates in the area, yet the newest and latest in water treatment technology thanks to the recent renovations.

If commissioners ultimately accept the recommendations of the rate study, which was conducted by Midwest Assistance Program this April, New Rockford's minimum charge would still be among the lowest in the area, but its usage rate would be among the highest.

The study recommends New Rockford increase their minimum rate by just 0.75 cents to $21, and their usage rate to $9 per 1,000 gallons – an increase of $5.50.

However, the rate study is only a recommendation, and commissioners appeared to make it clear that any water rate changes won't be happening in the immediate future, nor all at once.

"I would like to ease into it," said Commission President Stu Richter. "... We want to balance out the USDA's forceful hand to our people."

"The less burden on the people the better," added Commissioner Jacob Dauenhauer.

The commission seemed to agree that rates need to be increased enough to eliminate the deficit in their water fund, but suggested increasing rates gradually, perhaps over two or three years rather than all at once.

No final decisions were made, however, and commissioners said they'll likely make a final decision at an upcoming meeting early next year.

Presnell told the Transcript on Monday that the topic will be on the commission's January agenda for more discussion, and that an official proposal will likely be presented.

That meeting will take place on Monday, Jan. 6 at 9 a.m. in City Hall.