BOONE, Iowa—The Boone City Council has directed city staff to formally notify and begin working with Xenia Rural Water about a proposed rate increase the city will charge Xenia for water sold to the rural water district. The city and Xenia have an agreement that dates back to 1990 which set the rate at $1.30 per thousand gallons of water. Several years ago there was a discussion about a rate increase for Xenia, but that did not take place. Dan Scott, City Engineer recently presented information to the council’s Utility Committee and then brought the information to a recent city council meeting, with a recommendation for a rate increase to $1.95 per thousand gallons of water. The agreement itself spells out how to determine the cost of production of water and financial data from 2018 was used to calculate to proposed increase. The timing would allow the increase to take affect July 1, 2020.
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