Washburn commission approves sewer rate increase to support SRF funding requirements
The Washburn City Commission approved a $2 monthly sewer rate increase during its Aug. 10 meeting after city officials determined additional debt reserve funding was needed to meet requirements associated with a State Revolving Fund loan application related to lead service line work.
City Auditor Chelsey Brandt told commissioners that a review of the city’s SRF loan application found existing debt reserve funds were not properly earmarked. The city has an MMDA account containing $122,159.46, but officials discovered the city remained $49,975 short of the amount required to satisfy SRF requirements after designating those funds.
Commissioners unanimously approved designating the MMDA account as a debt reserve fund and authorized a $49,975 transfer to meet the requirement. The commission also approved a $2 increase in sewer rates, noting rates had not been raised in several years.