KALONA

Start saving your coins; over the next three years, water/sewer bills in Kalona could cost you an additional $500 - $700 a year.

It was a number-filled night for the Kalona City Council on Monday, Feb. 3, as City Administrator Ryan Schlabaugh did a preliminary review of the FY25-26 budget. While for the most part there were no dramatic surprises – the city proposes a levy of $10.36, virtually the same as the previous year – sharp increases to water and sewer rates had council members flinching.

Expensive updates to the city’s water and sewer systems, driven primarily by aging infrastructure and government mandates, mean the city must show adequate revenue to borrow the $10 million needed to tackle the projects. Schlabaugh presented a plan to raise water/sewer rates over three years, after which time they would level out.

Beginning in July 2025, the flat rate for water usage would increase from $14.50 to $18.50, and the rate per 1,000 gallons would increase from $2.73 to $4. Sewer rates would rise from $13.50 to $19.50 flat, and $3.09 to $4 per 1,000 gallons.

For a small user (4,000 gallons), that would add about $19/month to their bill. For a medium user (7,000 gallons), $25/month. “This is for everything,” Schlabaugh noted -- the complete package of water, sewer, usage, garbage, and storm sewer.

In July 2026, rates would increase again, adding an additional $18/month to small users’ bills and $25 to medium users’ bills. The last hike would take effect July 2027, adding another $7 to $8 to monthly bills.

That roughly 16% increase over three years amounts to about $520 a year for small users and $710 a year for medium users.

Schlabaugh said that this plan is for the “worst case scenario” in which the city receives no grant funding for the projects, although is hope is that some grant funds would be procured that could affect rates for 2026 and beyond. But he acknowledged the increases were eye-popping.

“We’ve tried to be in the lower third of rates,” he said. “We’re probably more in the middle of rates with what we’re proposing. It’s just a little bit of sticker shock because we haven’t had to make these adjustments in quite some time to take on a large borrowing effort.”

Council members agreed that the rate hikes are necessitated, but they were still concerned.

“I’m worried about the senior citizens in town on Social Security,” council member Hank Beisheim said. “They’re not going to be able to afford some of this rate increase, not the way the [federal] government’s currently talking.”

“If I were just on my Social Security, I’d probably be moving. I’d be forced to move because I can’t afford the bills anymore,” he added.

“I’m going to have trouble with this,” Mayor Mark Robe said. “I’ll tell you right now, I’m a one-income household. I’m going to have trouble with this.”

“There are people we already work with on a monthly basis,” City Clerk Sarah Schmelar said. “We understand, and we’re concerned about them also.”

Council member Greg Schmidt summed up the council’s sentiment: “This is something that we’re being mandated to do, which means that we’re really not all comfortable with that decision,” he said. “We understand, we just don’t like it either.”

As this was simply a review of the plan, no official action was taken. The council will likely set a public hearing on the matter at their next meeting, likely to be held on April 7.

Additional Budget Notes

Before the “uncomfortable” water/sewer rate discussion, Schlabaugh outlined for the council expectations for the FY25-26 budget. With an expected revenue of $1,258,414 and expenditures of $1,245,997, a $12,000 surplus is projected, “so we’re going to present a balanced budget on the general side,” he said.

Both fire and first responder departments would receive 3% increases; council member pay would increase $10/meeting; and the mayor’s pay would increase $250/year. The city’s nine full-time staff members would receive 5% pay increases, justified by the large infrastructure projects coming up and the desire to keep them, as they’re “all very good at what we do.”

Park to Park Trails

The city expects to receive donations to be used specifically for building more trails. To this end, the council approved opening a savings account with Hills Bank exclusively for these funds, which would be transferred to the general fund as they are spent.

The council also approved the formation of a Trails Committee, which would help guide the trails being constructed. A subset of this committee would be more active and engaged with the project, and the full group would ensure the community’s vision for trails is adhered to.

WCRF Grant

When the city presents their plans for municipal grant funds to the Washington County Riverboat Foundation in March, they will propose paying down Community Center debt, investing in the Kalona Historical Village, funding fire department equipment, building and upkeeping park shelters and walking paths, contributing toward community events, and contributing toward the Student-Built house. The council approved the grant proposal.

Public Forum

At the start of Monday night’s meeting, a resident of Richmond voiced aversion to President Trump’s deportation plans for immigrants.

“People are pretty pissed about it,” he said. “Make no mistake, they’re coming for moms and dads, my son’s classmates and my daughter’s classmates, and business owners and neighbors and friends.”

He expressed hope that people would oppose this, even though the majority of the county voted for Trump.

“I’ve got no power, and I know that the city council doesn’t either, but I just wanted all of us to think about who these people are that are going to be in the back of those trucks. They aren’t just going to be criminals; they are going to be our friends. And we voted for that,” he said.

The council acknowledged his concern and encouraged him to reach out to state representatives.

The Kalona City Council will next meet on Wednesday, Feb. 19 at 7 p.m. at City Hall, an adjustment from their regular Monday meeting time due to President’s Day.