Royal council moves closer to relinquishing water system

The Royal City Council is still interested in turning control of the city's water system over to Iowa Lakes Regional Water. During the council meeting on March 8, CEO Brad Veit reviewed the proposed 28E agreement and answered questions from city officials.

If the city turns its water utility over to ILRW, they would assume responsibility for the entire system, including maintenance and upgrades to infrastructure. Local customers would be billed by ILRW rather than the city.

Mayor Josh Toft explained that the city has a contract with Central Tank Coatings to paint the water tower. Council members still wish to fulfill that obligation.

"I think you should," Veit responded.

The city has also been replacing water meters and has some meters on hand. It was suggested that Maintenance Superintendent Sherman Nielsen continue to replace meters. ILRW would complete meter installations if they take over the system.

"If Sherman has time to do it, that's fine," Veit said. "If we come to town, we will make it a point to get the meters switched so we can get them read."

He also noted that ILRW could add Royal's sewer and garbage charges to the monthly water billing if the city wished.

According to discussion, Royal faces a large expense associated with renewing the water purchase agreement with ILRW if the city maintains its system. Veit explained that cities are assessed an amount representing a prorated share of ILRW's infrastructure. Fees have ranged from $500,000 for Linn Grove to over $1.2 million for Mallard.

"I'd say you are somewhere between Linn Grove and Mallard," Veit noted.

In the event Royal maintains its water system, the cost of the assessment would be passed on to customers. Council members feel that even with significantly higher rates, the city would not have enough revenue to upgrade its aging water system.

"We could raise our rates, but why would we want to take on any other project?" asked Council Member Matt Goyette.

The council has scheduled a public hearing at 6 p.m. on Wednesday, April 12. Council members and Veit will be present to receive comments and answer questions.

• Seek organizers for 125th celebration

Royal's 125th anniversary is two years away, but one resident would like to see the community begin planning to celebrate the event.

"In 2000 we had a really big deal. This time it won't be as big, but I still would like to see something done for the 125th," said Larry Pedersen. "It is two years away. We've got two years to figure it out."

According to discussion, council members would like to see community groups work together and coordinate ideas. Anyone interested in helping plan Royal's 125th celebration is asked to contact city hall.

In other business, the council approved the FY24 budget. According to City Clerk Barb Fletcher, the amount of property taxes to be collected is estimated to be $2,300 less than what was published in the budget estimate. The change is due to recently-passed legislation which affects property valuations.

Final approval was given to increases in solid waste, water and sanitary sewer rates. The new rates go into effect with the billing at the end of March.

Nielsen reported the chainsaw being purchased with grant funds has arrived. Bids for a new skid loader will be considered next month.

Home State Bank requested that in the event their building is damaged in a natural disaster, the community center would serve as a temporary location until a mobile banking facility can be set up. The council consented to allow that to occur.