City Council Meeting Date: October 7, 2025
To: Mayor and City Council
City Administrator
From: Brenda Angelstad, Finance Director
Justin Wagner, Utilities Manager
David Bennett, Public Works Director and City Engineer
Title
Consider Resolution Adopting Water Utility Rates for 2026.
Body
Action Requested:
The Northfield City Council approves the attached Resolution Adopting the Water - Utility Fee Schedule for 2026.
Summary Report:
Attached are two (2) resolutions for proposed water utility rates for 2026. In 2025, the City conducted a Utility Rate Study with Baker Tilly, Inc., a public sector financial advisor. The study included updated assumptions regarding budget revenue and expense projections and 10-year Capital Equipment and Capital Improvement Plans.
The report was presented by Springsted, Inc., at the September 16, 2025, City Council Work Session. The proposed rate adjustments are following the report recommendations and the adjustments for the 2026 Water Utility Rates:
Water
Option A (staff recommendation) - 9% increase for 2026. This option includes beginning to save for a future water treatment plant or other water projects. Building reserve in the water fund will help the City see less dramatic water rates increase when a new water treatment plant is constructed in the future. Northfield still will have water rates well below peer communities. The increase is needed to maintain positive operating income as well as to pay for anticipated operating expenses, capital outlay and debt service.
Option B - 4% increase for 2026. The increase is needed to maintain positive operating income as well as to pay for anticipated operating expenses, capital outlay and debt service.
Below is a graph of comparable cities water rates based on the different options.
Future projects that are planned in the water fund include:
- Construction of a northwest water tower that will provide economic development opportunities for the City which rece...
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