City utility rates to see small increase in 2025

By Chad Koenen

Publisher

Henning taxpayers could see a jump in their city taxes for the second straight year. 

During its regularly scheduled meeting last week, the Henning City Council approved a 20 percent increase in its tax levy. 

Last year the Henning City Council approved an identical 20 percent tax levy increase following years of low to no increase in city’s tax levy. That increase generated about $40,000 in additional revenue into the city’s general fund.

Councilman Jesse Hermanson said the finance committee recently met with the goal of lowering the 2025 tax levy, but could not find enough savings to bring down the levy.

“We wanted to find some savings somewhere, but it truly is not there,” he said. 

Utility supervisor Ted Strand said the closing of the hatchery building in the industrial park, and loss of revenue on the utility side, has had an adverse affect on the city as a whole. Short of cutting services within the community he said there wasn’t a viable way to bring down the 2025 tax levy. 

When the preliminary tax levy was approved in September, Strand said the 20 percent proposed levy increase would raise the city’s levy from approximately $296,000 to about $355,000. While it could vary from one property owner to the next, Strand said the increase would amount to about a couple of cups of coffee per month. 

“We figured it was about, just a simple analogy, if you look at it as two cups of coffee a month is what it would raise your taxes,” he said at the time.

In addition to the increase in property taxes, the city council approved a 10 percent increase in the city’s electric, water and sewer rates, as well as a five percent increase in natural gas rates. 

Strand said the city’s cost from Missouri River Energy System increased between 6-8 percent, while the natural gas rate was increased by five percent. In order to keep up with those costs, as well as several other projects like the city’s water treatment plant, Strand said the city needs to make the increases to rates.

Even with the increase in rates next year, Strand said “we are competitive” with its utility rates when compared to other companies in the region. 

In other news

• Approved seeking applications to fill the upcoming void on the city council that will be created when Jesse Hermanson vacates his seat to take over the mayor position in January. The city council is seeking applications from individuals who may be interested in serving on the city council through December 30 with the hopes of selecting a new person to fill the vacancy as soon as its January 2025 meeting. 

• Approved a $2,000 donation request from the Henning School Pages for a Purpose program. The donation request has been made in the past as well and features a $1,000 donation from Missouri River Energy that is matched by the city utility department. 

• Approved a fee of $14,500 to Apex Engineering for a preliminary design plan for a utility and surface infrastructure project. Last month the city council discussed a desire to have a shovel ready project for future projects should state or federal funding become available. The project, which was estimated at $7.5 million, would cover a wide portion of the city that still has old cast iron or vitrified clay pipes. Though no funding is available at this time, nor is it known how much grant money would be available, Bob Schliemann of Apex Engineering, is estimating the city could receive a grant of up to 77 percent of the total project.