Detroit Lakes City Council Advances Forest Street Project and Approves Rate Hikes
- Meeting Overview:
The Detroit Lakes City Council meeting focused on approving the Forest Street utility improvement project and discussing several rate increases for electric, water, and sewer services for 2025.
The Forest Street street and utility improvement project was a key focus, with the city engineer presenting plans for the initiative. Scheduled for summer 2025, this project aims to address the deteriorating condition of Forest Street, stretching from Rosman Avenue to Lake Avenue. The project was prioritized to align with the next phase of Westlake Drive improvements. Preliminary designs and surveys have been completed, with final design and bidding processes set for the winter months.
The existing infrastructure on Forest Street poses challenges, as there is no longitudinal sanitary sewer except at some intersections. The water main infrastructure includes a trunk line that has exceeded its reliable service life. An outdated 8-inch cast iron pipe at Summit Avenue also remains from a previous project. The street condition is poor, which included numerous cracks and potholes, justifying the need for reconstruction. Current parking regulations allowing parking on both sides of the street further complicate traffic flow during peak times, such as school hours and events at nearby parks. The proposed improvements include widening the street from 36 feet to 44 feet to better accommodate on-street parking and two-way traffic.
The project also plans to replace the existing sidewalk on the north side and add a new sidewalk on the south side between Rosman and Summit. This enhancement is intended to improve safety for students at Rosman School and park visitors. The project cost is estimated at over $2 million, funded primarily through city utility funds, general tax levies, and municipal state aid funds. Special assessments will be levied on adjacent properties, though the city will cover a portion of the costs. The assessment policy states that the city will assume 100% of the costs for sanitary and water main replacements, while service laterals will still be assessed to property owners. The city will bear approximately $1.5 million of the total costs, with about $500,000 assessed to property owners.
The council addressed concerns about financial burdens on property owners, project disruption during construction, and the necessity of the improvements. Despite the lack of public commentary during the hearing, the council emphasized the project’s critical role in addressing long-term infrastructural needs.
In addition to the Forest Street project, the council discussed proposed rate increases for electric, water, and sewer services for 2025. The Public Utilities Commission had reviewed and approved these rates. A 5% increase in the electric rate was proposed, resulting in an average increase of approximately $4 per month for residential customers consuming 800 kilowatt-hours. This rate remains competitive compared to neighboring utilities, positioning Detroit Lakes advantageously.
Water rates are set to increase by 12%, driven by the need to cover debt service costs related to the water tower replacement and infrastructure improvements. This increase would result in about a $3 monthly rise for the average residential water bill. The electric rate increase reflects rising wholesale power costs from Missouri River Energy Services and Western Area Power Administration, impacting the electric fund by approximately $663,000 in 2025.
The council approved these rate increases unanimously, acknowledging the challenges posed by funding and resource allocation. A motion was made to approve the proposed increases for electric, water, and sewer rates, with both the finance committee and Public Utilities Commission recommending approval.
Further discussions at the meeting included a public hearing on the Highway 10 East water and sewer extension project, originating from a developer petition by Quality Equipment. This project aimed to extend sewer and water services to their new equipment dealership east of town, with overall project costs amounting to about $33,000, lower than initially projected. No audience members commented or inquired during this hearing.
The council also addressed unpaid fire protection charges for 2023, setting specific assessments for properties with outstanding fire bills to be assessed to property taxes for the upcoming year at an interest rate of 5.5%. Again, no public comments were made during this period.
A resolution for annexation by order was discussed. The council emphasized the need for communication with the landowner and the township to avoid escalating the process to a contested proceeding before an administrative law judge in St. Paul. The resolution passed unanimously.
The council also approved a bid for the DMRA Treehouse project, part of the Legacy Grant at Detroit Mountain. The bid of $11,250 to Hammer’s Construction was recommended for approval, leading to a motion that passed without opposition.
Additionally, the council approved the DMRA parking lot and Nordic ski loop project, awarding the contract to Lindco of St. Cloud, Minnesota, for approximately $1.172 million. This project marked the culmination of efforts spanning 20 years.
Matt Brenk
City Council Officials:
Shaun Carlson (Alderman First Ward), Ron Zeman (Alderman First Ward), Mike Stearns (Alderman Second Ward), Wendy Spry (Alderman Second Ward), Aaron Dallmann (Alderman at Large), Matt Boeke (Alderman Third Ward), Dan Josephson (Alderman Third Ward), Jaimie Deraney (Alderman At Large), Jackie Buboltz (Alderman At Large)
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Meeting Type:
City Council
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Committee:
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Meeting Date:
11/12/2024
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Recording Published:
11/15/2024
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Duration:
97 Minutes
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Notability Score:
Routine
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State:
Minnesota
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County:
Becker County
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Towns:
Detroit Lakes
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