The Albert Lea City Council is expected to consider a 7 percent water rate increase for 2019 Monday.

Albert Lea Finance Director Kristi Brutlag said the increase will raise water rates $1.90 per month on homes with an average water use of 6,000 gallons per year.

She said the increase covers capital improvement projects such as a new water tower and other water infrastructure work.

The sewer rate is not expected to increase.

First Ward Councilor Rich Murray said he plans to vote for the water rate increase because of the amount of work that necessitated the increase.

“We need to at this stage,” he said.

Brutlag said the city will undergo a rate study next year that includes evaluating expenses, calculating inflation and evaluating capital improvement projects. She expects the city to learn 2020 sewer and water rate numbers following the study.

Sixth Ward Councilor Al “Minnow” Brooks said though he is “not a big fan of increasing our water rate seven percent,” councilors will likely need to do so for a couple more years so the account remains solvent. He expects councilors to then be able to consider lessening the rate increases because there will be enough funding.

Also to be voted on is the recommended tax levy, which is approximately $129,261 lower than the preliminary levy the council approved in September — $6.44 million to $6.31 million.

The general fund operating levy is expected to be approved at $4.75 million, and the debt service levy $1.55 million.

Brutlag said the overall tax levy will not increase, but noted the value of most homes has increased. If a home value increased 5 percent, taxes will rise $1.89 next year.

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

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

Councilors will also adopt solid waste, Senior Center and airport budgets.

“While the city is not required to formally adopt budgets for other funds, staff recommends approving the budgets to provide more information and transparency to the public on spending for such funds,” Albert Lea City Manager Chad Adams said in a report.

Murray said he was pleased the city plans to have no increase in the tax levy but wishes more businesses and housing would enter the community so the tax base can grow.

He spoke highly of the work city staff have done during the budgeting process.

“I’ve been pretty happy with the job they’ve been doing,” Murray said.