New Florence city officials held a public hearing on Jan. 21 to discuss the proposed 50-cent increase to the wastewater rates in the city.

If approved by the Board of Aldermen in the Feb. 9 board meeting, base rates will go up from $39.15 to $39.65 in residential services and $40.15 in commercial and out of city limit services. Just three years ago, the base rate was $19.65 for all three services. The next year, it increased another $11 in order for the city to secure the funding for the new sewer project. In 2025, residential rates increased to $8.50, while commercial and out of city limit rates jumped to $9.

“We have to continue to raise the rates in order to stay within parameters,” New Florence Alderman Deby Juntenen said. “Otherwise, we won’t be able to keep the loan intact. This is what happened with the previous board prior to me. They would never raise it, never raise it, never raise it, which forced us to have to raise it to $10 in order to get back into parameters.”

In 2023, the city applied for a 60/40 grant through an SRF loan to help pay for repairs of its wastewater system that would prevent water infiltration and replacement of the lift stations. The cost of the project was an estimated $1,885,000.

The project also combined the outstanding funds from the January 2010 wastewater project. The city was awarded the American Recovery and Reinvestment Act Direct Loan and Grant that totaled more than $1.8 million. The money helped pay for repairs to the wastewater system.

At the public hearing, City Administrator David Ingle presented the wastewater rates to the Board. In 2024, the residential, commercial and out of city limit rates were increased and they all had the same rate of $30.65. The next year, residential rates increased to $39.15, while commercial and out of city limit rates were $39.65.

The wastewater rates were evaluated by the Department of Natural Resources and McClure Engineering. DNR required the city to establish a rate increase program to cover the loan convenience of 110 percent so the operations of the wastewater system can be continued. 

“When we applied for that grant of the 60/40 on the SRF loan, we had to meet certain stipulations by DNR to secure that funding,” Ingle said. “Part of that process is that you have to charge your customers enough to cover the loan.”

Aldermen Jason Carter, Glenn Bartlett and Michelle Fortmann and Mayor Beth Nelson were in attendance at the public hearing.