Water Rates in Small Cities and Villages

Abstract

According to the latest information the author has at hand, there are 202 water works plants in the State of Minnesota, of which 195 are publically and 7 privately owned. In view of the foregoing, the Minnesota Section of the American Water Works Association will be interested in water rates which apply particularly to municipally owned plants. A municipality when operating a water works system is engaging in a commercial enterprise, and to be successful, it must furnish adequate service at reasonable rates, which must be in proportion to the service rendered and without discrimination. The service rendered by a water works plant is of two distinct types; first, it must be ready to furnish water in comparatively large quantities under high pressure for short periods of time for the purpose of extinguishing fires; and second, it must furnish ample quantities of suitable water for domestic purposes under moderate pressure at all times. It is now generally conceded that all the expense incident to the former should be borne by the village or city at large. It is possibly unfortunate that the method of arriving at the compensation' for fire service has generally taken the form of hydrant rental, as the number of fire hydrants has but a remote relation to the value or cost of the service. It has been estimated that 60 to 80 per cent of the cost of water works plants in cities under 5000 is incurred by providing reasonable fire protection. Two years ago the author was called on to report on the matter of rates for the village of Crosby, Minnesota, which problem involved some unusual and interesting features. Crosby has a population of approximately 3500, and owes its existence largely to iron mining industries in the immediate vicinity. The water works plant was