Albert Lea residents will see a minor 3 percent increase in their water rates during 2011, as approved by the Albert Lea City Council on Monday.

Mayor Vern Rasmussen said the increase will be an average of less than $6 per year, or an average increase of about 49 cents per month.

There will be no increase to sanitary sewer rates for residents.

For industrial users and business owners, there will also be a 3 percent increase in water rates, and businesses with a 3-, 4- or 6-inch meter will also see a 25 percent fixed rate charge increase as was proposed in 2009.

This equals out to be an increase of somewhere between $40 and $140 per month for businesses with the 3-, 4- and 6-inch meters.

Albert Lea City Engineer Steven Jahnke said this will affect about a dozen places, primarily the major wet industries and food industries. Albert Lea High School will also be affected.

The changes take place after the city implemented a new rate structure in January 2010.

The city had hired independent firm TKDA in 2009 to perform a rate study.

Because the new fixed rates for the 3-, 4- and 6-inch meters increased significantly in the proposal, the plan was to increase by 50 percent in 2010, 25 percent in 2011 and 25 percent in 2012.

Water rates were going to need to increase by 3 percent for the next three years.

In other action, the City Council:

• Approved a 1.25 percent increase in wages for non-union employees, along with providing a step increase for employees within the six-year progression.

This is consistent with the increase approved by the firefighters union and which was offered to the Teamsters Local 320 police union.

City Clerk Shirley Slater-Schulte said a 1 percent increase and the step increases were in the 2011 budget and the remaining 0.25 percent will be covered by health insurance excess.

She said the city budgeted for a 10 percent health insurance increase and the actual increase was 5 to 8 percent.

• Authorized the allocation of police and fire pension interest earnings for 2010.

According to Slater-Schulte, interest earnings for 2010 totaled about $500,000.

The resolution allocated the earnings to be applied to general police and fire expenditures, with $270,000 going toward payment of the shared Freeborn County Law Enforcement Center.

• Approved the Small Cities Development grant application that will be submitted on behalf of the city.

• Awarded bids for the city’s annual chemical supplies.

• Set the value of one acre of undeveloped land in the city at $10,000 per acre, as it was in 2010.

• Adopted the 2011 fee schedule.

The most significant changes include an increase in metal sampling, mixed municipal solid waste, tires and park reservation rentals.

• Approved a request from the Fountain Lake Sportsmen’s Club to use City Beach on Feb. 20 from 7 a.m. to 5 p.m. for an ice fishing tournament.

• Approved a resolution declaring that council members be covered under the city’s workers compensation policy during 2011.

• Designated the Albert Lea Tribune as the city’s official newspaper for 2011 for publishing legal notices.