Editorial: Utility rate hike another result of Farmland fire

Published 12:00 am Tuesday, December 10, 2002

The news that water and sewer rates in Albert Lea will be going up by 20 percent next year is another unfortunate circumstance of the Farmland fire, and it serves as a reminder of the impact of industry in ways beyond the obvious creation of jobs.

Farmland was the city’s largest water and sewer customer. Many residents didn’t feel like the plant affected them directly, but now we know differently; the fire will literally cost everyone in the city, if it hasn’t already.

With the plant gone, the city’s utility fund is short on cash, and the only way to make it up is to raise rates for everyone else. That creates even more of a hardship at a time when other local taxes are going up for most of Albert Lea, and when the economy is in recession.

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However, at the same council meeting where the city raised the utility rates, it approved a proposal for Quality Pork Processors, the Austin meat processing operation that

is considering expanding. Even though the city would make the business climate here favorable by offering tax-increment financing, which more or less keeps the property off the tax rolls for 15 years, the plant would immediatly become a large consumer of water and sewer services. That’s something that affects everyone.

The company is not a lock to come here, and there’s no way to tell when a decision will even be made. But when any company considers an expansion or relocation, it’s a good idea to consider all the possible benefits. The same will be true if Farmland ever gets past its bankruptcy and considers building anew in Albert Lea

In the meantime, there’s one bright spot: The city’s switch to monthly billing instead of quarterly billing could make the extra costs easier to work into a budget.

Tribune editorials represent the opinion of the newspaper’s management and editorial staff.