City council approves first reading of sewer and water rate hikes

If the Decorah City Council votes "yes" two more times, water and sewer rates in the city will be going up.

The proposal approved Monday night would increase sewer rates by 10 percent and water rates by 15 percent.  City council member Steve Luse says the goal is to have a reserve equaling 25 percent of the sewer and water utilities' yearly operating budgets.  Currently the water fund has a deficit of $133,173.  The 15 percent increase in rates would leave it with a $46,188 deficit.  The sewer fund, on the other hand, has a $45,231 surplus, with a projected $131,643 surplus by the end of 2016-2017.

Luse argued for a higher water increase than 15 percent, but city council member Kirk Johnson said it would be better to "do it incrementally."  The issue will be discussed again June 6th.