Leeds City Council approves water and sewer rate increases to fund projects

During the City of Lead Commission Meeting on May 19, 2025, city officials discussed key financial updates and proposed adjustments to utility rates, reflecting the city's ongoing efforts to maintain fiscal health and meet infrastructure needs.

The meeting began with the approval of the city’s financials, which showed a modest increase of $2,000 from the previous month, bringing the April ending balance to $928,637.68. This financial stability is crucial as the city navigates upcoming projects and funding requirements.

A significant topic of discussion was the proposed changes to water and sewer rates, driven by the need to fund the Douglas Supply Line Project. The current water rate of $33.75 is set to increase to $35, while the charge for additional water usage will rise from $3.65 to $5 per thousand gallons. This adjustment is necessary to qualify for a lower interest rate on a state loan, which could save the city considerable funds over the life of the loan.

Additionally, the sewer rate, which has remained unchanged since 2012, is proposed to increase from $11 to $16 per month. This adjustment is critical as the sewer fund currently faces a deficit of approximately $17,000. Officials emphasized that without these increases, the fund's sustainability is at risk, potentially jeopardizing future grant and loan applications for necessary infrastructure improvements.

The proposed rate changes reflect a broader trend of municipalities needing to adjust fees incrementally to keep pace with rising operational costs. City officials noted that maintaining competitive utility rates is essential for securing funding for future projects and ensuring the long-term viability of city services.

In conclusion, the discussions at the City of Lead Commission Meeting highlight the importance of proactive financial management in addressing infrastructure needs and maintaining the health of municipal funds. As the city moves forward, these proposed rate adjustments will be crucial in supporting ongoing projects and ensuring the sustainability of essential services.