City officials studying proposal to transfer funds to the sewer and water fund

Sewer and water rates in the City of Decorah have not been keeping up with the operational costs.  As a result, the city's sewer fund is now predicted to be $55,000 in the red by the end of June, while the water fund is predicted to be $75,000 in the red at the same date.

City officials have begun discussing the need to raise sewer and water rates.  But there's also the question of what to do about the projected $129,827 deficit as of June 30th.

City officials are discussing a proposal to transfer $125,000 from the city's general fund to cover the deficit.  The proposal would be for a one-time-only transfer.  Debt service levy funds that will not be needed after December of 2012 will be used to pay back the $125,000.