Updated data shows rural water bills will not increase as drastically as some think

Newton WaterWorks provides more water to Iowa Regional Utilities Association than to its own citizens, and yet the rural utility company has paid significantly less for the natural resource in the past few years, according to financial data Newton News acquired from both entities.

According to the Newton WaterWorks customer revenue in FY23, citizens paid a total of $2,266,007.28 from water bills. The city’s data shows the wholesale revenue it received from IRUA in FY23 to be $1,232,960.04, which conflicts with the $1,325,814.60 IRUA reported to Newton News.

However, it is still less than what all of Newton citizens are paying for water.

Updated information from the City of Newton also shows the new water rate for IRUA covers the city’s costs to produce water for the rural utility company. The city shared this data in an infographic, which states that a 2024 cost of service study showed it costs $3.27 per 1,000 gallons to produce water for IRUA.

The new 93,000,000 gallons per month minimum water rate for IRUA has been set at $3.27 per 1,000 gallons following city council’s action on March 18.

Currently, the 93,000,000 gallons per month minimum water rate for IRUA is set at $1.14 per 1,000 gallons. This rate has been in effect since 2019. Which means the new rate is only an increase of $2.13 per 1,000. But what will IRUA change its rates to? The city says that is up to the utility company to decide.

Several IRUA customers have worried their bills will be a percent-to-percent increase from the new rates IRUA have been charged by Newton WaterWorks. But that is not the case. If IRUA passes on all of the water rate costs to their customers, bills will theoretically not increase as drastically as people think.

Here are some examples of how rural water bills may look without accounting for tax and if IRUA passed on all of the water rate costs to customers:

• Customer who uses 5,000 gallons per month: $73.70 to $84.35

• Customer who uses 4,000 gallons per month: $63.82 to $72.34

• Customer who uses 3,000 gallons per month: $53.94 to $60.33

• Customer who uses 2,000 gallons per month: $44.06 to $48.32

The increases shared above were based on existing water bills and then adding $2.13 per 1,000 gallons to those totals.

IRUA has not made any final decisions regarding its customer rates, but it has acknowledged the council’s action on its website.

The notification on the home page of IRUA.net says: “IRUA is aware of the City of Newton’s actions. IRUA disputes that the city’s unprecedented rate increase was developed and approved in compliance with the terms of our water purchase agreement.”