Water, sewer rates may be on the rise in Forest Lake

The City of Forest Lake, fighting a flow of red ink for sewer and water services, wants a 10 percent increase in consumer rates.

The proposal results from an unfortunate collision of rising sewer disposal costs and declining revenues from water hookups at new houses, said Ellen Paulseth, the city's finance director. The first utility rate increase in seven years would help reverse three consecutive years of deficits, she said.

"After all, it's inflation and the economy that are at work here," Paulseth said.

The City Council will consider the proposal at its Monday meeting. If approved, a typical Forest Lake family using 22,000 gallons of water a year would pay $58.55 more. Someone using 5,000 gallons a year would pay $25.16 more per year.

A business or industry using 1.4 million gallons a year could expect an increase of $3,628.

In recent years the city has paid more in sewage disposal charges to the Metropolitan Council. In 2006, Paulseth said, the cost of piping sewage for processing in St. Paul was $920,000. In 2011, that fee jumped to $1.2 million.

Meanwhile, the city built a new water tower and treatment facility because of projected new housing, but that growth screeched to a halt with the economic downturn, Paulseth said.

A typical monthly residential utility bill in Forest Lake would rise to $45.68 a month, according to a presentation Paulseth made to the City Council in December. That's pennies more than South St. Paul and pennies less than Falcon Heights in a survey of metro-area cities.

Compared to other Washing- ton County localities, Forest Lake's typical residential bill would top Lake Elmo ($23.14), Oakdale ($38.83) and St. Paul Park ($41.50) but remain lower than Mahtomedi ($52.71).

Paulseth said some residents have called City Hall to ask about their bills, but few people have complained. "No real protest that I'm aware of," she said.