Residents heard regarding future of Royal's water system

Royal residents had an opportunity to express their views about a proposal to turn operation of the city's water utility to Iowa Lakes Regional Water.

Approximately a dozen people attended the public meeting on April 12 regarding the plan, which grew out of an earlier discussion regarding piping under Royal's water tower.

"Things rolled into what's the future plan for the Royal water system; how would it look if we operated it," said ILRW CEO Brad Veit.

Under the proposed 28E agreement, ILRW would take over full operation of Royal's water system, including mains, hydrants, water tower, meters and billing.

Veit told those in attendance what would happen to rates if the agreement is approved.

"It will double the water rates in town," he acknowledged.

That statement drew responses from several residents who are concerned about the impact of higher bills on those with fixed incomes. Concern was also expressed about water pressure in town and what improvements might be made to the local system.

Mayor Josh Toft responded that the city should have been raising water rates in the past and added that the council was "willing to listen to a third option" if residents were against what was being proposed.

According to discussion, Royal's water system is "showing its age" and the city does not have the resources to fund significant repairs or improvements.

Another concern is the expiration of the agreement that permits Royal to purchase water from ILRW. If the city continues to maintain its water system, ILRW will assess a connection fee of approximately $600,000 when the agreement is up for renewal in 2028.

Veit pointed out that the connection fee will not be assessed if the city turns operation of its water system over to ILRW.

Council members stated that if Royal maintains its system, rates would still have to be as high as those of ILRW.

According to City Clerk Barb Fletcher, the minimum monthly amount charged for water, sewer and garbage collection is $67. If ILRW operates the water utility, their billing plus city charges for sewer and garbage would increase the minimum to $106.

Admitting that he did not like to see a rate increase, Council Member Jim Virelli said a decision to turn over operation of Royal's water utility is "the right way to go."

Council Member Matt Goyette noted, "Instead of a customer of Royal water, you will be a customer of rural water."

Action on the proposed agreement with ILRW was tabled so the city attorney can review it and clarify the process the council needs to follow to approve it.