The Duluth City Council on Monday voted 4-5 against a measure that would have increased water rates.
Under the measure, the water utility would have raised about $2.4 million in new revenue, including $669,000 for the city's retiree health-care liability. The rest of the new money would have gone toward repairing the city's aged water-utility system.
The measure's failure also means that rates in Hermantown, Proctor and Rice Lake Township will not drop significantly next year.
Until Monday's vote, Duluth water customers were on course for 9 percent rate increases in 2008, 2009 and 2010, and a 5 percent increase in 2011. That's on top of this year's 20 percent water utility increase to help pay for the city's $309 million retiree health-care liability and upgrades to the city's water-utility system.
Councilors against rate increase
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Councilors Jim Stauber, Don Ness, Greg Gilbert, Tim Little and Garry Krause voted against the rate hikes.
Gilbert and Ness both said they felt as though the costs were distributed unfairly. The two councilors are running for mayor.
Councilors for rate increase
Among the measure's supporters, 1st District Councilor Laurie Johnson, whose eastern district has experienced many water main breaks, implored councilors to look forward.
Third District Councilor Russ Stewart pointed out that the city spent more than $30,000 on private consultants to create the measure. "If reducing costs means pushing off maintenance, we are not doing anyone any favors," he said.
