Water treatment loan forces Lonsdale to raise rates

The Lonsdale City Council held an efficient meeting with an involved agenda on Thursday, May 12, at City Hall.

One item of importance added to the agenda was the qualifications for the loan from the Public Facility Authority (PFA) for construction of the water treatment plant. City Administrator Joel Erickson said the PFA loan dictates that the council increase the water rate base fee by $5 per household in order to be considered for the low interest loan. The reason given is that the city must generate enough revenue to self-support the new loan. He explained that collateral or the fact that the city carries a healthy reserve in the water fund of more than $2 million didn't make a difference in qualifying for PFA.

I'm not a big fan of raising the rates

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