In anticipation of a new south water plant, along with uncertainty about Farmland Foods’ plans, the city council voted to raise the city water rates, effective Sept.

Tuesday, July 24, 2001

In anticipation of a new south water plant, along with uncertainty about Farmland Foods’ plans, the city council voted to raise the city water rates, effective Sept. 1.

The increase will mean an additional $2 per month on the bills of residential customers and $4 per month for commercial customers.

The council approved the sale of $1.6 million in general obligation water revenue bonds to pay for the new south water treatment plant and well modifications. The rate increase will pay back the bonds.

&uot;We also will experience a loss in revenue with the closure of Farmland,&uot; City Manager Paul Sparks said. &uot;This was not a major source of revenue, but we will experience a loss because of the fire.&uot;

The council unanimously approved the measure after no one came forward during a public hearing to express any opinion about the increase.

City Manager Paul Sparks said the rate hike is the first since 1998.

In other council news:

The city maintained its A-1 bond rating from Moody’s Investor

Services of New York. Councilor Don McPherson said the rating

is the company’s highest and reflects well on city management.

&uot;Essentially it’s our credit rating, and we have a good

one. It’s important to maintain that because it saves the taxpayers

money,&uot; McPherson said.

At the request of Community Action Agency, the council approved

up to 3,000 free city pool passes for Farmland employees and

their families for the remainder of the season. The passes would

be dispersed through Community Action. Each free admission is

worth about $1.25, said Sparks.

The council gave the go-ahead for a new Kwik Trip store at

the corner of Front Street and First Avenue South. The planning

commission approved a conditional use permit for the new store

and expanded location two weeks ago. The redeveloped Kwik Trip

will offer nine two-sided pumps, compared to the current location’s

four. The store itself will have more space, an expanded fountain

wall, coffee bar and grill area.

Construction of the new store will begin in August, after the

existing store is demolished.

The Albert Lea Convention and Visitors Bureau (CVB) received

$20,900 Monday, after the council voted to release the remainder

of withheld lodging tax money.

Sparks said the CVB provided the city with a detailed plan for

the use of the money, plus a budget for the coming year.

&uot;I think they are in compliance with the guidelines set

forth by the city,&uot; Sparks said.

Almost $28,000 in excess lodging tax funds were with withheld

from the CVB last October because city officials were not satisfied

with monthly expense reports. The council released more than

$7,000 from the fund after the CVB was forced to take out a short-term

loan in April to meet its payroll obligations.

At the suggestion of councilor Ron Sorenson, the council also

approved a workshop with councilors and CVB representatives to

rework the agency’s contract with the city.