NYM to increase water rates to fund project
News | Published on October 20, 2026 at 10:14pm GMT+0000 | Author: Kendall Koenen
0By Chad Koenen
Publisher
Water rates for New York Mills utility customers will take a sharp increase next year as the city funds a new water treatment facility and necessary well improvements.
During its regularly scheduled meeting last week, the NY Mills City Council approved a 20 percent increase in water rates for 2027, as well as a 10 percent increase in 2028. Water rates will increase annually to account for inflammation beginning in 2029.
The increase in rates was needed to help fund a large water treatment facility and well improvements in the South Point development. The city’s total cost of the project was estimated to be $11.19 million, which includes a five percent contingency. The city received a grant to cover approximately 50 percent of the overall project, while low-interest loans will cover the remaining cost.
The final increase in water rates could be lowered before they are implemented each year, but the city would need to demonstrate to the Public Financing Authority the full ability to afford the new debt service in order to secure the loan.
Even with the increase in water rates the City of NY Mills will still be well below a number of regional communities for its monthly changes.
According to information presented at the meeting last week, the average customer who uses 3,500 gallons a month paid $36.43 per month for water in NY Mills. That is near the median of 30 area communities who ranged from as low as $26.82 per month to as high as $72.80 per month.
If the 20 percent increase takes effect next year, local residents would see their water costs for a similar amount of usage increase by about $7 per month to $43.72. In 2028, following another 10 percent increase the rate would go to $43.08 per month, which is still lower than eight communities on the chart. However, the council said the rates presented last week don’t account for increases in the comparing cities’ rates, and that NY Mills will still likely be near the middle of the pack in water rates moving forward.
In other news
• Heard the liquor store report that showed combined gross sales for the month were up nine percent from the prior year and net revenues for the month were up 1.08 percent as a percentage of sales from the prior year. Net revenues before transfers this year are up about $10,000 compared to this time last year at $19,208.34. The off-sale net before transfers is a loss of $1,139.71 and the net revenue before transfers is $20,348.05.
• Heard the monthly report from the police department that showed 162 calls for service and three citations last month. The full-time applications have been scored and the top two candidates will be interviewed for the open full-time officer position.
• Heard the monthly public works report that stated five natural gas projects were completed during the week of September 21 with assistance from Michels Utility Services. The department is also preparing for the winter months; water main valve exercising and hydrant flushing has been completed and Valley Irrigation was contacted to blow out the force main for the wastewater irrigation systems.
• Approved the hiring of Jason Hotakainen as public works director and Jesse Saewert as public works maintenance worker III.
• Heard from Mike Richter about his desire to see the city change city ordinance 23 that regulated residential garbage and recycling container placement storage. Richter said some residents are leaving their garbage containers on the curb all week long, as opposed to bringing the containers away from the street/curb once the garbage pick up has been completed. The council said it will have the ordinance committee look at a sample ordinance Richter presented the city and will take the suggestion under advisement.
• Heard from NY Mills School Superintendent Adam Johnson about the upcoming school building referendum. Johnson walked the council through the project as a whole, the need and made himself available for questions from the council and city as a whole.
• Approved an up-to 60 day delay to collect necessary information about a request from the Cultural Center to install a drive through waiting line, as well as convert the alley into a one way. The delay in making a decision regarding the request will allow the zoning commission more time to answer questions about the project and gather input from neighboring properties.