The treatment plant could be built near a current water pumping building on Birch Street. It would help handle excess levels of manganese from some of the city’s wells. The estimated cost is $21 million.
A new 36 page water rate study looks at the water system’s future with or without a new water plant and proposes ways to pay for it. Usage rates may increase 4% a year, and a $10 fixed fee would top out at $25 per quarter.
“That is proposed to increase from ten to fifteen dollars in 2023, the fixed dollar annual increase stopping at 25 dollars in 2025,” said Finance Director Hannah Lynch. “So that is solely to pay for a water treatment plant.”
Lynch says even without a treatment plant, rates could still go up since the system hasn’t had an increase in six years and is currently running at an operating loss.
According to the study, if a water treatment plant is built, a homeowner paying $99.40 per quarter for water now, would pay $129.59 in 2025.
Without a new water plant, the bill would still increase, but only to $108.68 per quarter in 2025.
There are still many decisions to make.
“We want to keep this in front of council, especially deciding if we want to build this water treatment plant or not. So I think that is one of the biggest decisions,” said Lynch.
Once that decision is made, Lynch says the City Council can decide whether to go with the recommended increases in the study. Water rates will be considered in November and could take effect in January of 2022.
Even if higher rates are approved, the study says Lino Lakes would still be lower than many neighboring cities.
