St. Francis Proposes 33% Hike in Water, Sewer Bills Over Next Two Years

St. Francis Proposes 33% Hike in Water, Sewer Bills Over Next Two Years

The City of St. Francis, Minnesota, is proposing a 33% increase in water and sewer bills over the next two years, citing mounting infrastructure costs and unexpected budget pressures.

City officials say the steep hike is necessary to address both skyrocketing equipment costs for the municipal water treatment system and long-overdue upgrades to the city’s aging utility infrastructure.

According to Public Works Director Paul Carpenter, the city had originally budgeted $60,000 for essential equipment at the water plant. However, updated cost estimates provided by engineering firms now place the figure closer to $800,000—a difference of $740,000.

In addition to equipment overruns, city leaders emphasize that much of St. Francis’s utility system was built in the 1970s and is undersized for the community’s growing population. Replacing and expanding this infrastructure, they argue, is critical to ensuring reliable water and sewer services in the future.

The city has pursued outside assistance, including an application for a $3 million federal grant, but these efforts have not covered the full scope of costs. As a result, the proposed rate increase would provide local funding stability while long-term solutions are explored.

The City Council is expected to vote on the budget—which includes the phased-in 33% rate hike—in December. If the budget is not approved, officials say alternative financing options such as municipal bonding or additional state grants may be considered.

Minneapolimedia