Rochester City Council Approves Sewer Rate Plan to Fund System Upgrades

Rochester's City Council has passed a plan to fund sewer system upgrades by increasing the hookup charge for new homes and raising monthly sewer bills for households. The plan, approved on a 6-1 vote, will raise the new-home hookup charge to $2,500 by 2009, while increasing the average monthly sewer bill by $1.40 in 2008 and another $1.51 in 2009. This decision comes after builders and developers argued that higher fees would hamper their efforts to build and sell affordable houses.

Key Takeaways:

• The new-home hookup charge will increase to $2,500 by 2009, up from its current level.
• The average monthly sewer bill will rise by $1.40 in 2008 and by another $1.51 in 2009.
• The plan does not address commercial sewer rates, and the fee and rate increases are intended to help the city stay abreast of needs to improve and expand its sewer system.
• Grow Rochester, an organization representing builders, developers, and real estate professionals, lost the argument to cap the hookup charge at $1,500, citing concerns that higher fees would hurt the housing market.
• Council President Dennis Hanson voted against the plan, expressing concerns about the impact of rising fees on starter homes for future generations.
• The plan aims to advance to a $2,500 fee gradually, starting with $500 in 2004, and increasing by $500 per year until the fee matures at the full amount.

Statistics:

• Average monthly sewer bill in 2007: $16.38
• Increase in average monthly sewer bill in 2008: $1.40
• Increase in average monthly sewer bill in 2009: $1.51
• New-home hookup charge by 2009: $2,500
• Inflationary cost increases covered by annually raising the fee: labor and materials costs

Sources:

• "City council OKs sewer plan." Post-Bulletin, Rochester, Minn., December 12, 2006.
• Zimmerman, Lyle. Interview with the Post-Bulletin, Rochester, Minn., December 12, 2006.
• Grow Rochester. Press release, December 2006.