The Carroll City Council approved the final reading of a 7.5-percent increase in water rates for customers at their meeting last night (Monday). City officials had been working through the process for several months and delayed the final reading, which had initially been scheduled for the June 9 meeting, to consider using $964,000 in federally sourced surplus sewer funds to offset some of the Northwest Pressure Zone project, estimated at $5.8 million. Public Works Director Randy Krauel says those funds were included in their funding projections.
As Krauel indicates, the rate changes are being phased in over four years. Without the surplus sewer funds, the cumulative increase is projected to be 30.7 percent; however, with the $964,000 included, it decreases to 27.4 percent. The city will finance the remainder of the project’s cost via $2.7 million in bonds. Ward 4 Councilwoman Carolyn Siemann notes they still do not have firm numbers on the Northwest Pressure Zone project’s price tag.
The city projects water revenues will increase by more than $300,000 per year by the time the last rate hike is implemented, which will be used to repay debt for the pressure zone project and other utility capital improvements. Ward 3 Councilman Kyle Bauer questions the scenario if estimated revenues or project costs are not accurate.
Bauer has opposed the rate increases since their introduction, citing concerns over their magnitude and the speed of implementation. The council voted 5-1, Bauer being the sole nay vote, to approve the final reading of the 7.5 percent increase for Fiscal Year (FY) 2026. The motion to adopt the ordinance passed on the same margin. The current schedule shows rates increasing again in FY27 by 7.5 percent, followed by 5.0 percent in FY28, and a further 5.0 percent in FY29.
