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 We want to inform our customers that water rates will be increasing due to a recent rate adjustment by Public Wholesale Water Supply District No. 20, our wholesale water supplier.

Public Wholesale Water Supply District No. 20 has raised the cost of water purchases, which directly impacts our operating expenses. As a result, we must adjust our water rates to reflect this change and continue providing reliable, quality water service to our community.

Effective September 20th, 2025, the new rates will be:

* In city limits $50.50 minimum of 1,000 gallons.
* Outside city limits $56.88 minimum of 1,000 gallons.

This is a $5.00 increase on the minimum cost. We understand that any increase in utility costs can be difficult, and we remain committed to keeping rates as affordable as possible while maintaining the infrastructure and service levels you rely on. 

As most are concerned about the increase to water rates the city would like to give you all a breakdown of the how they came up with the $5.00 increase. 

The city has a minimum purchase agreement with Public Wholesale Water Supply District No. 20 of 2.77 million gallons of water per month. The original cost was $5.00 per 1,000 gallons at minimum coming out to $13,850.00 a month for purchase of minimum water usage. In March of 2025 Public Wholesale Water Supply District No. 20 voted to raise the minimum purchase from $5.00 to $6.00 per 1,000 gallons. With our purchase minimum charge increasing to $16,620.00 a month starting June 2025 for May usage. The city has been paying for the last four months an increase without increasing the water rates to the public. This creates a loss each month. A loss that will be detrimental to the city's water reserve. 

13,850.00
-16,620.00
  2,770.00 per month extra on minimum purchase

There are currently 620 meters for the city water system. If you take the extra minimum $2,770.00 divided by 620 meters you will get a total of $4.47 the city would need to increase each meter to break even on the increased change. The council decided to round that up to $5.00 as to have some increase for the reserve. 

The water rates that are collected by the city does not just go to purchase the water from PWWSD#20, it goes towards the wages for city employees, maintenance for the water, water meters, equipment repairs, supplies for water lines, and water bond payment each year for the water line replacement project in 2019.

In addition to the rates increasing the public should know that with the minimum contract of 2.77 million gallons the city is required to pay each month, the city on average has used only 1.468 million gallons a month leaving the deficient of $23,540 of water that has not been used but purchased this year.

If you have any questions or would like more information about the rate adjustment, please contact city hall 620-725-3193