Water rates in the City of Charles City have had a built-in increase of about 3.5% annually.
However, even with that regular bump, what the City takes in in payments from residential and commercial users is not keeping up with the true cost of providing that water.
During their planning session earlier this week, the City Council heard from Water Superintendent Cory Spieker about factors that impact the cost of water in Charles City, such as lime softening.
Spieker also noted various approaches to charging for water service.
City Administrator Tyler Trout says all three models have their advantages, depending on City priorities.
Councilwoman Phoebe Pittman agreed, pointing to the gap between residential and commercial rates.
Because it was a planning session, no action could be made by the Council, with Trout proposing a formal rate study on how to best address the discrepancies in the water rates being paid and the cost of providing that water.
