PUC

ups rates

for water,

wastewater

Increase takes

effect in 2005

By FRITZ BUSCH

Journal Staff Writer

NEW ULM -- City wastewater and water users will have to dig a little deeper into their wallets next year and deeper still in succeeding years.

On Tuesday, the New Ulm Public Utilities Commission unanimously approved raising wastewater rates for residential users an average of 4 percent or 84 cents per month in 2005, 5.5 percent or $1.20 per month in 2006 and 8.7 percent or $2 per month in 2007.

Domestic, municipal, commercial and Courtland rates will be $3.05 per 1,000 gallons effective with the February 2005 billing for January usage. Industrial flow rates will climb to $1.60 per 1,000 gallons.

Additional funds are needed to cover operational costs and needed equipment, said Utilities Director Gary Gleisner.

Residential water rates will rise 7 percent or $19 per year and industrial rates will climb 10 percent in 2005.

Beginning Jan. 1, 2005, residential rates will rise to 3.11 cents per gallon, minimum $9 per month. Commercial rates will rise to 2.78 cents per 100 gallons, minimum $16 per month; industrial rates 2.46 cents per 100 gallons, minimum $25 per month, municipal/PUC rates 2.95 cents per 100 gallons, $20 minimum and temporary service 3.11 cents per 100 gallons, minimum $5 per meter, per day.

Commissioner Jim Schuetzle said the cost increases were in line with inflation.

Rate increases were needed to cover a depleted cash balance caused by water main reconstruction, according to Gleisner. He said the city will be looking at large future capital expense options including more water reservoirs and/or water towers to tie the water system together.

Commissioner Tom Hendel said he was interested in meeting with the City Council regarding future budgeting after the fall election.

A coordinated effort for both city entities to use the same reference point could be achieved by sitting down and mulling over future issues, according to New Ulm City Manager Brian Gramentz.

Hendel suggested using an independent facilitator, perhaps from the Twin Cities.

James Hogan, PUC President, suggested scheduling a conference with an outside entity.

Commissioners unanimously approved:

* Declaring about 170,000 gallons of propane gas stored at the Peak Shaving Facility as surplus property and authorized disposition pursuant to City Code (sealed bids).

Propane gas valued at $136,000 was purchased before the 2003-2004 winter season as a backup fuel in case New Ulm's natural gas supplier curtailed the supply, or if significant operations problems occurred with the Hutchinson natural gas supply line.

The transition to the new gas supply line occurred in March 2004 without operational problems.

The natural gas market is very strong right now, Gleisner said. Schuetzle predicted a strong demand for grain drying this year.

* Regarding outstanding administrative and operational issues, Hogan said noise abatement was needed at a regulating station at Valley and Center Street before the winter season. He said the Town Border Station on KC Road looked good.

Pending issues include a contract with Northern Natural Gas as a secondary natural gas supply source, an Environmental Quality Board (EQB) regarding the Fairfax Town Border Station and a retaining wall in the alley between First and Second North streets and Broadway and State streets.

The city attorney has been in contact with the EQB regarding the Fairfax natural gas tap. An action plan is being developed.

The final survey has been submitted locating the test wells along the new natural gas line into New Ulm. With data in, all monitoring procedures should be in place.

New Ulm Public Utilities recorded a net loss of $264,525 for July 2004, which compares to a budget net loss of $208,645. The year-to-date net margin of $595,074 compares to a budget net margin of $882,686.