W’bago Council might up rates
The Winnebago City Council gathered for their regular meeting a day late this month – on Wednesday, Nov. 9 – due to the midterm elections which were held on Tuesday, Nov. 8.
Though not thrilled at the prospect, the City Council voted on Wednesday to propose an increase to Winnebago’s water rates.
The proposed water rate increase would raise rates from $5 per 1,000 gallons to $7 per 1,000 gallons. City administrator Judi Hynes explained she arrived at the amount after meticulous calculations.
“After careful consideration, it was determined that the current rates being charged for water will not cover next year’s water fund budget,” Hynes informed the council.
Hynes cited a large negative balance in the water fund as the primary reason Winnebago needs to increase its incoming water fees.
“You want to get to the point where you have a healthy, positive balance,” she said.
Hynes explained she calculated that the city bills for approximately 27 million gallons of water per year. Were Winnebago to continue to charge residents $5 per 1,000 gallons, the fees would not cover the costs the city incurs to provide this much water, and the rates would certainly not lessen the negative balance in the water fund.
Council member Paul Eisenmenger disclosed that the Utility Committee, which he is a member of, spent an hour and a half discussing whether the rate increase was necessary before recommending it to the council.
Council member Calvin Howard inquired how Winnebago ended up needing to increase rates so drastically.
“The only question I really have is, what’s going on?” Howard said. “Every year we’re coming to this point.”
“It’s because we’re trying to make up this negative figure,” Hynes responded.
Eisenmenger also observed, “The problem is, for many, many years we were selling water for cheaper than we were making it. Now we have all these debts.”
Howard noted that even with water rates raised to $7 per 1,000 gallons, Winnebago’s water rates will still be comparable to Blue Earth’s rates.
He concluded, “In the spirit of not having a choice, I make a motion to propose the utility rate increase.”
The city will hold a public hearing regarding the proposed water rate increase on Tuesday, Dec. 13, at 6 p.m. After the hearing, the council will vote on whether they will officially instate the rate increase.
In other business, the Winnebago City Council:
• Approved a proposal to increase bulk water fees from $15 per 1,000 gallons to $20 per 1,000 gallons.
• Passed Resolution 800-2022 to convey city-owned property at 435 First Avenue N. to Kayla Stauffer and Seth Voss for $500.
• Received an annual Community and Economic Development Associates (CEDA) report from EDA specialist Jennifer Howard. She informed the City Council that the EDA has received $26,451 in grant funds so far this year and is also conducting an ongoing housing study.
• Approved a contract for professional services with CEDA. The contract engages Howard’s services for Winnebago two days a week for the next six months, at a $26,746 cost.
Calvin Howard, Jennifer Howard’s husband, abstained from voting.
• Reviewed proposals from GovOffice and Bevcomm to design and install a new website for the city of Winnebago. Hynes noted the city’s current website, which was last updated in 2011, is very outdated and requires attention.
A package proposed by GovOffice would cost the city $3,995 initially and a total of $15,980 over the next four years. Bevcomm’s proposal had an initial $4,935 cost and would cost the city $9,735 over the next four years.
The council approved Hynes to contract Bevcomm’s website design services, contingent on Bevcomm’s ability to demonstrate adequate cybersecurity protocols.
• Approved Resolution 801-2022 setting Winnebago’s fees and rates for 2023.
Hynes noted the only changes to the city’s fees and rates next year will include raising fees for swimming lessons to $35 and raising the fee for adult daily swim passes from $4 to $5. Copying fees will also increase slightly.
• Approved tax roll assessments on utility bills, utility repair charges and lawn mowing.
• Approved a request from Abby Butler that the city serve as a non-monetary sponsor for Winnebago’s annual Turkey Trot on Thanksgiving morning, Nov. 24.
• Approved Hynes to send out a Request for Proposals for cleaning services for the city of Winnebago.
The cleaning services would include cleaning City Hall and the Muir Library.
• Went into closed session to discuss labor negotiations, after which the council took no action.
• Scheduled Winnebago’s Truth and Taxation Hearing on Dec. 13, at 6 p.m.