Council votes to boost water rates

By Dick Mason, The Observer May 16, 2013 12:14 pm

ISLAND CITY — Island City residents will soon be paying more for water service. 

Island City’s City Council voted Monday to boost basic water service rates by $5. 

The increase means that residents will see  their rates jump by $5 to $35. The base rates for commercial users will also jump by $5. 

The base rate for water service is being raised to help Island City qualify for a $2.997 million loan from USDA Rural Development, said Mayor Dale De Long. The city will have to make two more comparable base rate increases for water service in the future to put it in a position to qualify for the loan.

The water project would add a new well, a new well pump station, distribution system piping upgrades and a new 500,000 gallon storage reservoir. 

The new reservoir would significantly increase the flow of water needed for emergencies such as fires.

The loan for the water project, if received from Rural Development, would be repaid by Island City by using revenue from an increase in water rates.