What is Behind the Increase in Sewer Rates
3/28/2025
Why are Sewer Rates increasing?
A regional approach to collecting and treating wastewater began with staff members from the cities of Goodhue and Zumbrota discussing their wastewater treatment needs. From these initial discussions, it was discovered that each of the communities were facing similar issues with their current wastewater facilities. In a collaborative effort, the communities of Goodhue, Pine Island, Wanamingo and Zumbrota explored the costs and feasibility of a regional sanitary sewer district that has come to be known as North Zumbro Sanitary Sewer District (NZSSD). In 2023, the State of Minnesota included $10 Million in their Bonding Bill for NZSSD to purchase the land, which is centrally located near Zumbrota, as well as for engineering services for design. Preliminary costs for the new centralized Wastewater Treatment Plant is $83.3 Million Dollars. We have been speaking to legislators to be included in their bonding bill to cover half of this project. We have requested federal funding also.
Large capital costs for improvements to the facilities and the possibility of facing tighter permit limits led to discussions about alternatives to conventional methods of providing wastewater treatment for their individual communities. There were several alternatives considered:
- Upgrade Current Facility – The current Goodhue City Water Treatment Plant is in such poor condition; it is not feasible to upgrade.
- Build a new facility – The current Goodhue City Water Treatment Plant site does not have enough land available to construct a new facility. Acquiring land and building a new facility would cost $10.2 Million with annual operating expenses of $250,000/year.
- As a member of the NZSSD – Goodhue portion would be $4.248 Million with $87,000/year annual operating expenses.
Why is this needed?
- The City of Goodhue’s current Water Treatment Plant is at capacity. As a result, the City CANNOT add more housing developments, nor commercial or industrial connections.
- The Minnesota Pollution Control Agency will NOT renew the current permit after 2028 at the current state.
To be prepared for this project, the City of Goodhue is required to show that we are saving for our portion of costs. As such it is necessary for the City of Goodhue to raise base sewer rates to start building revenue for this project. To help with effective planning, rates for the next 3 years have been established, to get to the rate the City will be required when the NZSSD is completed. The rates have been set to 2025 = $49/month, 2026 = $59/month, 2027 = $74/month.