City Council Meeting Date: August 4, 2025
To: Mayor and City Council
From: Ben Martig, City Administrator
Title
Discussion of Multi-Family Water Meter Ordinance (Councilor Dahlen Request).
Body
Action Requested:
None recommended at this meeting.
Summary Report:
Councilor Dahlen provided the following information related to interest in an ordinance amendment related to water metering for multi-family units.
Legislative Goal:
It shall be the policy of the city that no one who pays from a water meter should pay more for water and sewer than anyone else in the city of Northfield, and that the meter be subject to visual inspection or radio confirmation in order to carry out leak detection.
Legislative History
When the new owners of Viking Terrace (Lakeshore) took over, they instituted an across the board rent increase of $200 per lot. Essentially in 2023, the rent was 400 and in 2024 the monthly rental fee became $600 for a lot. Most of the lots have a single-wide Mobile Home (or manufactured home) on the lot. The home itself is owned by the resident. Lakeshore owns the land upon which it sits, plus the surrounding land.
The population of Viking Terrace is unknown, but is projected to be around 400 or 500 (173 homes X 2.5 persons per home.)
In 2025, instead of increasing rent again, Lakeshore announced that they would not seek an increase in rent in 2025, but would install water meters and have residents pay their own water and sewer bill. The payment for water and sewer had previously (perhaps, decades long) been part of the monthly lot rental.
Lakeshore sent out the first bills on May 1, 2025. The bills, which residents submitted to various persons, show the following:
1. Instead of the city’s 7.48 gallons (or cubic fee) measuring of use, the Lakeshore bills in increments of 1,000 gallons. It appears that if a resident uses 1001 gallons, Lakeshore rounds up, and the resident pays at the 2000 gallons mark. The rates ascend: 2001-3000; 3001-4000, etc.
2. Outside of Viking Terrace, a typical resident (with 2 or 2.5 persons in the house) would use approximately 4,000 gallons of water per month and pay the following:
WATER: 12.86 base charge, plus $11.20 (between the 28 and 34 cents per 100 gallons) for a total of $24.00
SEWER: around $28.00
for a grand total of $52.00 per month. This would be considered a moderately high user, it is believed. A more common scenario, with a conservative household, would be 30 or 40 dollars a month.
3. At Viking Terrace, the bills are much higher, even 3x higher (see attached). This is the primary impetus for this Ordinance, as the proposed Ordinance states:
WHEREAS, the water drawn from the aquifer belongs to all those who live and work in the City of Northfield;
WHEREAS, the city pumps and distributes the water for the use and the equal enjoyment of all;
Second Legislative Purpose:
The primary purpose of water meters is to base payment on use. But it is also needed for leak detection. Leaks in any system can happen, so the question is how those leaks are detected, and if they go undetected, how much will it increase the monthly payment. It should be noted that sewer changes are based on water use, so there is an added cost to a water leak.
Cities, such as Northfield, advise residents to go to bed at night, but first write down the meter number. During the night, don’t drink water or flush the toilet, and in the morning, the meter number should be the same. It if is not, you have a leak.
At Viking Terrace, the new meters were placed *underneath* the unit. Residents cannot easily (or at all) wiggle underneath their mobile home to do this. So, the radio signal that Lakeshore receives would be the alternative. Lakeshore would be in the position of owning and reading the meter, but sharing it with the homeowner.
City Administrator Martig and Community Development Director Reilly have been reviewing this request. They believe that the legislative goal is appropriate and have been researching legal consideration in preparation of an ordinance amendment. The ordinance conceptually would have requirements on transparency of billing that would require similar unit measurement billing to the City billing for all multi-family homes that have individual meters. Additionally, if there were any private added charges above and beyond the City cost for water, it would require an itemized description and justification for that private fee. There may be other policy considerations to add but these are some basic fundamental components. The work is underway but are not in a position yet to address.
This is an opportunity for Councilor Dahlen to share this issue he raised and for any clarification from Council. Staff would be coming forward with background and a draft ordinance amendment for review. Should Council have questions or feedback from the initial information that could be raised during the questions and discussion portion of the meeting.
Alternative Options:
Not applicable
Financial Impacts:
Not applicable.
Tentative Timelines:
August 19 - Ordinance First Reading
September 9 - Ordinance Second Reading