Water & Sewer Rates and Policies - Effective January 1, 2026

 

The City of Slayton has adopted updated water and sewer rates effective January 1, 2026. These changes support ongoing maintenance, capital improvements, and regulatory compliance of the City’s water and wastewater systems. The new rate structure is designed to maintain reliable service while reflecting the true cost of system operation and long-term infrastructure needs.

2026 Water and Sewer Rate Schedule

 

Rate ComponentCurrent Rate (through Dec. 31, 2025)New Rate (effective Jan. 1, 2026)
Base Monthly Charge $10.00 base monthly water charge (includes 2,000 gallons)$20.00 flat monthly sewer charge $55.00 base monthly water/sewer charge (no usage included)
Usage Charge $3.00 per 1,000 gallons after first 2,000 gallons $4.00 per 1,000 gallons of water used
Capital Improvement Surcharge $3.00 per month — (eliminated)
City Cleanup Day Surcharge $1.00 per month (residential only) $1.00 per month (residential only)
State Water Testing Fee $2.43 per quarter (pass-through to State of Minnesota) $2.00 per month (pass-through to State of Minnesota)

 

Note: The State of Minnesota is increasing its required water testing fee effective January 1, 2026. This fee is a pass-through cost to the State and is not retained by the City of Slayton.

Policy Summary

  • Updated rates take effect for all bills issued after January 1, 2026.
  • The state’s required water testing fee has increased; this cost is passed through directly to the State of Minnesota and not kept by the City.
    • This fee will be be billed monthly starting 1/1/2026 and no longer will be billed quarterly.
  • These rate adjustments ensure funding for maintenance, infrastructure reinvestment, and regulatory compliance.
  • Rates will be reviewed periodically, ideally every year, to ensure fairness and sustainability.

Frequently Asked Questions

Why are rates increasing?

The City of Slayton periodically reviews water and sewer rates to ensure they adequately fund operations, maintenance, and long-term capital improvements. Rising material and utility costs, along with state-mandated testing requirements, have made an adjustment necessary to maintain reliable service.

When will I see this change on my bill?

Bills issued after January 1, 2026 will reflect the new rates. Consumption prior to that date will be billed at the 2025 rates.

How will this affect my monthly bill?

Every household’s bill will vary based on water usage, but here’s a general example:

Example Usage

Current Monthly Total

New Monthly Total (2026)

Approx. Change

2,000 gallons

~$34.00

~$66.00

+$32.00

4,000 gallons

~$40.00

~$74.00

+$34.00

6,000 gallons

~$46.00

~$82.00

+$36.00

Does the City keep the state testing fee?

No. The Minnesota Department of Health requires the City to collect a state water testing fee per connection. This is a pass-through charge sent directly to the State; the City does not retain any portion of that fee.

What is included in the new $55.00 base monthly charge?

The new base charge combines both the water and sewer base fees into one simplified amount. It covers the fixed costs of maintaining water wells, treatment and distribution systems, wastewater collection, and sewer treatment—costs that exist whether water is used or not. This structure ensures all users contribute fairly to the basic operation of the system.

Why is the usage allowance (2,000 gallons) being removed? 

Removing the included usage encourages conservation and more accurately reflects the true cost of providing water and sewer services. Customers now pay based on how much water they use, which is a fairer, more transparent approach that aligns with best practices statewide.

What does the "City Cleanup Day" surcharge fund?

The $1.00 monthly surcharge (for residential customers only) helps offset the cost of the City’s annual Cleanup Day event, where residents can dispose of large or hard-to-recycle items at a reduced cost. This fee remains unchanged.

How does Slayton's new water and sewer rates compare to other regional cities? 

Under the new rate structure, a typical household using 6,000 gallons of water per month in Slayton will pay $82.00. By comparison, the average cost for the same usage across 26 regional cities is $121.68.

This means Slayton’s rates remain well below the regional average, providing high-quality water and sewer service at a competitive and affordable price for residents.

Will future rate increases happen automatically?

No. The City Council will review the rate structure annually (ideally every year) and must approve any future adjustments through council action.

What's changing with landlord and tenant utility billing?

Beginning January 1, 2026, and in accordance with Chapter 51.46 of the Slayton City Code, all utility accounts will be maintained in the property owner’s name. Property owners will no longer be able to list a tenant’s name on a City utility account. This change is consistent with the City’s authority under Minnesota Statute ยง 444.075, which allows cities to assess unpaid utility charges against the property itself.

Owners may continue to manage reimbursement from tenants through private lease arrangements, but all billing, account responsibility, and notices from the City will be directed to the property owner or their authorized agent.

Can I still have my water service "turned off" while I'm away for the winter or an extended period? 

No. Beginning January 1, 2026, the City will no longer allow temporary suspension of the water portion of utility billing for seasonal or extended absences. The new base charge of $55.00 per month will apply per account, per month, regardless of whether the property is occupied or water is in use.

This policy ensures that all connected properties contribute to the fixed costs of maintaining and operating the City’s water and sewer systems year-round, even when usage temporarily drops to zero.

How  are water rates different for customers living outside the City of Slayton? 

Customers who receive City water but live outside the City limits are billed a triple usage rate for water. Beginning January 1, 2026, these customers will pay $12.00 per 1,000 gallons of water used.

The base monthly charge for outside-city customers remains the same as for in-city customers ($55.00 per month), but the higher usage rate reflects the additional cost of providing water service beyond City boundaries. This ensures fairness while covering the infrastructure and maintenance costs associated with serving properties outside the City.

Existing outside-city customers will have their billing adjusted to reflect the new structure. Moving forward, new customers must annex into the City of Slayton to receive water and sewer service.

Who can I contact with questions?

Please contact the City of Slayton at cityhall@slayton.govoffice.com or by phone at (507) 836-8534.