The Albert Lea City Council unanimously approved a 7 percent water rate increase Monday night.

The increase is expected to raise water rates $1.90 per month on homes with an average water use of 6,000 gallons per year.

Albert Lea City Manager Chad Adams said the city wants to increase its cash balance in the water fund from nearly $489,000 to prevent the fund to be decimated by one project.

Adams said the water rate was previously recommended to be raised 25 percent two years in a row, but that amount ended up being increased on a more gradual basis over 10 years. 

Though 6th Ward Councilor Al “Minnow” Brooks said he was not “crazy” about raising the rate 7 percent, he hopes the council can decrease the increase amounts once the water fund is built up.

The sewer rate did not increase.

Councilors approved a zero percent increase in both the operating and debt service levies. The approved tax levy was $129,261 lower than the preliminary levy the council approved in September — $6.44 million to $6.31 million. The general fund operating levy was set at $4.75 million, and the debt service levy $1.55 million.

If a home’s value did not increase, city taxes will decrease approximately $29.

The value of most homes in Albert Lea has increased, however. If a home value increased 5 percent, taxes will rise $1.89 next year.

The general fund budget was set at $16.49 million, an approximately 3.24 percent increase from the $15.97 million 2018 budget.

Albert Lea Finance Director Krist Brutlag presented to the council Monday that an estimated 40 percent of 2019 general fund budget funds are for public safety, 22 percent for parks, recreation and library services and 18 percent for public works. Twelve percent is for general government operations.

Brutlag compared Albert Lea’s 2019 tax levy to regional communities. She said the Albert Lea school district has a 5.5 percent proposed increase, Freeborn County 4.8 percent, 15.7 percent in Austin, 7.8 percent in Faribault and 5.1 percent in Mankato.

Third Ward Councilor Jason Howland called Albert Lea having no tax levy increase “pretty amazing” and thanked city staff. He acknowledged service costs continue to rise and predicted the levy will likely not be kept at zero again next year. 

Councilors set the Albert Lea Housing and Redevelopment Authority 2019 property tax levy at $109,000, the same as in 2018, and approved the 2019-2023 capital improvement plan.

In other action, the council:

• Increased non-union employee salaries 2.5 percent for 2019 and provided step increases for employees still in the six-step progression. The agreement is considered consistent with approved raises for union city employees.

• Accepted a $6,786 donation by Friends of the Library and a $1,000 donation to the holiday lights fund by ITC Midwest Inc.

• Supported the Small Town and Regional Vitality Investment Act of 2018 proposed by 1st District U.S. Rep. Tim Walz, DFL-Minnesota.The city described the act as being meant to “address specific challenges in rural communities, such as child care, infrastructure improvement, housing opportunities, reliable internet and an increase in health care services.”

Walz was elected Minnesota governor in November.

• Recognized graduates of the Albert Lea Police Department Hispanic Citizens Academy.

Look to the Tribune for more information about the meeting on Wednesday.