As the next fiscal year begins on July 1st for the city of Adel, residents are also reminded that several utility rates are set to go up.

Mayor Jim Peters tells Raccoon Valley Radio that the city recently installed a brand new water plant as well as a new sewer system. He notes that those have to be financed through user fees, which are calculated with the City Financial Advisor. With that, Peters mentions that the water rates are increasing six percent from the flat rate of $36.38, sewer rates are going up five percent from the $34.27 flat rate, and garbage rates are determined by a consumer price index, but will increase 44 cents. He lays out the contributing factors that are leading to the increases.

“It’s primarily the operating expenses. When we incurred debt, that was a fixed price, so in other words, it wasn’t a variable interest rate that we’re paying. So those payments to retire the debt are pretty steady. And so, most of this increase reflects just the operating cost.”

Peters understands that people may think the rate increases are significant, but he emphasizes that they are necessary in order to keep the services running. He shares all three rates were amended for adoption at the June 23rd City Council meeting, and will go into effect this Tuesday.