IRON MOUNTAIN — The city council Monday approved a 10% increase in Iron Mountain’s water and sewer charges, representing just a portion of the revenue needed to replace lead service lines over the next 20 years.

The new rate — a monthly increase of about $6 for moderate usage — still keeps the city’s charges below most other Upper Peninsula municipalities.

Future increases will push rates toward the current mid-range, although charges likely will be going up across the U.P., City Manager Jordan Stanchina said.

“Most municipalities are going to have to deal with this,” he said, noting an estimated 30% increase from today’s rates is needed to stay on track. Even with such an increase, “we’d still be pretty competitive as far as where our rate is,” he said.

A typical residential bill for Iron Mountain water and sewer includes a $21.50 flat monthly rate, plus a usage charge of $25.77 per 1,000 cubic feet for water and $32 per 1,000 cubic feet for sewer. Translated into gallons, the total residential bill for one month for 5,000 gallons of usage is about $60, which now will go to $66.

In the wake of the Flint water crisis, Michigan directed communities to replace all lead service lines by 2040. Although tests have shown no alarming levels of lead locally, Iron Mountain has up to 1,800 lead “goose neck” connections that will cost an estimated $9 million to replace.

About $450,000, then, will be needed each year. In

light of the coronavirus, the city will hold the increase to 10%, effective July 1, which is expected to generate $150,000.

In other action Monday, the city council:

— Adopted the 2020-21 fiscal year budget that calls for a city government levy of 21.2322 mills, or $21.23 per $1,000 of taxable value. That’s up by 0.4513 mills, or 45 cents per $1,000 taxable value, with the increase due to a special levy voters approved in November to fund a school liaison officer. The general fund budget of $7.16 million is up by 2.6% and provides for wage increases of 2%, although no union contracts have been settled for the upcoming fiscal year.

— Heard Stanchina say the budget may require significant adjustments, depending on state shared revenues. Due to the pandemic, the city anticipates a 20% reduction — or $138,629 — in its share of state sales tax collections. To partially offset the decline, the city is deferring $52,500 in capital improvement spending and $79,500 in equipment replacement. In addition to the sale tax loss, a 20% reduction in road funding is anticipated. The actual impact is uncertain, Stanchina said. Federal stimulus funding could also come into play, though nothing has yet been realized.

— Learned the Downtown Development Authority has canceled this year’s Italian Fest as well as the June dates for Out to Lunch. A decision on Out to Lunch concerts for July and August will be made later. Oktoberfest also is on hold.

— Set a deadline of 4 p.m. June 22 to receive construction bids for a paving and utility project on five blocks of West C Street from Carpenter Avenue west to Lake Street, plus two blocks of Lake Street. In addition to street reconstruction, it includes sanitary sewer, storm sewer, water mains and sidewalks. The city will have a special meeting June 22 to open bids, with a recommendation expected for the July 6 regular meeting. The estimated $1.7 million project was designed last year, but the city held off on construction. It includes replacing about 42 lead service connections.

— Scheduled a public hearing for 6 p.m. June 15 on a request from Rize to vacate a city right-of-way that runs through a portion of its marijuana development at 1580 N. Stephenson Ave. The city will need an easement for a water main but otherwise has raised no issues. An opening date for the growing and processing facility and dispensary has not been announced.

— Will begin discussions on when city recreation sites might partially reopen. Mayor Dale Alessandrini noted the disc golf course at City Park has opened but will be closed if golfers continue to remove safety wraps placed over the baskets.

— Agreed to reopen the Department of Public Works compost site to the public on a trial basis.

— Reappointed Michael Martin to a three-year term on the city’s planning commission.

Jim Anderson can be reached at 906-774-3500, ext. 226, or janderson@ironmountaindailynews.com.