Mount Ayr water rate increases are revamped
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Rate increase now will effect those using over 2,000 gallons per month
The Mount Ayr city council restarted the ordinance approval process for water and sewer rates and approved the second reading of the garbage rate ordinance at their regular meeting Monday, July 14.
In the first council meeting for Assistant City Administrator, Brandy Anderson, the council also debated whether to financially support Ringgold County Deveopment Corporation (RCDC).
Water rate adjustment
Rather than increasing water rates on the minimum water bill, the council considered a higher percentage increase for residents using more than 2,000 gallons of water a month.
Council member Chandra Poore asked how many people go over the minimum water use.
City Administrator Brent Wise estimated nearly half of residents use more than 2,000 gallons.
The revised rate study from Northland Securities maintained the same 2% annual increase for minimum water rates as in previous years. New figures recommended increasing rates for usage over 2,000 gallons by 5%.
The 5% increase could become effective later this year, and remain in place through June of 2027. Beginning July 1, 2027, the percentage increase would adjust to 3.5% through 2029, and eventually settle at 3%.
This alternative would still provide enough revenue to cover debt service payments for the estimated $350,000 meter replacement project.
The council moved forward with the recommendations and approved the first reading of the water ordinance with adjusted rates as presented.
Sewer rate adjustment
The council also reviewed a revised sewer rate study from Northland Securities with a different approach.
While the recommendations lowered the minimum billing rate, a proposed capital improvement fee was added beginning in FY 2025-26 to cover the remaining year of elevated debt service.
For a resident living inside city limits, the current minimum bill (2,000 gallons) would only change from $38.66 to $40 if the ordinance is adopted.
Inside city limits, average bills in FY 25-26 for residents were estimated to be:
$50.00 – 2,500 gallons
$64.00 – 3,200 gallons
$79.86 – 4,000 gallons
Beginning in FY 2026-27, the $20 capital improvement fee would drop to $10.60 each year, minimum sewer rates would increase 1% annually, while additional 100 gallons would increase 2% annually.
The council also approved the first reading of the sewer ordinance with adjusted rates as presented by Northland Securities.
RCDC contribution
Historically, RCDC has requested financial support from Ringgold County and The City of Mount Ayr to cover operational expenses. In prior years, the city has provided a $12,000 donation to RCDC, and received a request to continue that level of support.
Wise noted the current budget reflected $7,000, although $5,000 could also come from another economic development line item.
Council members noted they had already shared the financial expense of demolishing a house in support of a RCDC housing project.
Mayor Steve Fetty questioned the financial necessity since RCDC received a large donation, and now has the ability to generate income as a non-profit organization.
With the absence of council member Jessica Murphy, the council faced a split decision. A motion to provide $7,000 to RCDC, put forward by Poore and seconded by Greene, did not pass as council members Henle and Wik voted no.
Other business
In other regular business, the council approved:
A temporary Class C retail alcohol license for Gettin’ Slushed on July 30, 2025;
The second reading of the garbage ordinance, adjusting rates $1 per billing cycle the first year, and 3% each year after;
A $4,674.99 quote from Swartzentruber Construction to hook up two buildings to the city water line after the completion of the Madison Street project;
An agreement with Garden and Associates for storm water engineering services;
The low quote (38266), to purchase a sewer camera at a cost of $8,595.00, after reviewing three different options from Subsurface Solutions;
Resolution 2025-22 hiring relief umpire, Jaize Frost.
The council tabled a decision to purchase a new fire truck, as only one quote was submitted to the council for review. Council member Poore questioned whether they got three bids. The council moved the decision to a special meeting scheduled for Wednesday, July 16.
A public hearing was previously set for July 16 at 6 p.m. for residents to have an opportunity to speak prior to entering into a general obligation loan agreement up to $600,000 to address street and storm water drainage improvement projects.
Administrator Update
Administrator Wise shared that the city has been advised to get an unbiased opinion from another engineering firm to help settle the Madison Street Project.
He noted work had begun over the weekend to install the airport hangar doors.
Wise also reported street improvement projects have been delayed due to excessive rain. He confirmed asphalt projects would be undertaken first, and chip sealing would take place in the fall.
The sesquicentennial committee is making progress on funding, earning $50,000 and has also received an Iowa Arts grant.
The next regular meeting of the council will be Monday, July 28 at 6:00 p.m.
