City of Minden residents should expect to pay more on their October utility bill.

The Minden City Council on Monday adopted an ordinance that adds a $3 monthly infrastructure surcharge and hikes water and sewer rates.

The funds collected by the monthly surcharge will be put into a capital improvements account, which will be used for projects across the city when needed.

“It’s kind of like a savings account,” Mayor Tommy Davis told the Press-Herald in July. “The money will be used for projects such as street improvements, water department or wastewater projects, things of that nature.”

A major change will be coming to the way water and sewer rates are calculated as the city moves to a five-tiered billing system for residents, which will see a yearly increase.

Currently, residents within the city limits pay a rate of $2.95 per 1,000 gallons with a minimum base fee of $9.

Under the new-tiered system, the water rate will be determined by the amount of water used in the billing cycle.

Residents that use between 1 and 14,999 gallons will pay $3.14 per 1,000 gallons on tier one; between 15 and 29,999 gallons will pay $3.60 per 1,000 gallons on tier two; between 30,000 and 49,999 gallons will pay $4.15 per 1,000 gallons on tier three; between 50,000 and 99,999 gallons will pay $4.70 per 1,000 gallons on tier four; and anyone that uses more than 100,000 gallons, will pay $5.25 per 1,000 gallons on tier five. The $9 minimum base charge will remain.

Residents outside of the city limits, but on the city’s water supply will be charged $4.14 for tier one; $4.58 for tier two; $5.13 for tier three; $5.68 for tier four; and $6.23 for tier five. The current base price of $30 will remain.

For businesses inside the city limits, the water rates will be based on a four-tiered system.

Currently, businesses pay a base fee of $25 and $2.95 per 1,000 gallons for the first 25,000 gallons and $2.50 per 1,000 gallons after.

Under the new system, businesses that use between 0 and 24,999 gallons will be charged $3.14 per 1,000 gallons; between 25,000 and 99,999 gallons will be charged $3.54 per 1,000 gallons; between 100,000 and 299,999 gallons will be charged $4.04; and more than 300,000 gallons will be charged at a rate of $4.54.

Charges for sprinkler or standpipe systems will also see a $2 hike across the board. A six-inch or smaller connection will now cost $8 per month, while an eight-inch connection will cost $12 and a 10-inch connection will cost $17.

Changes will also be coming to sewer rates as well.

Currently sewer charges are based off the gallons of water consumed for the billing cycle. For the first 2,000 gallons, users are charged $9 and $2.95 for each gallon above.

Under the new system, sewer rates will be charged the same as the water rates for each tier. The minimum base pay will remain at $9.

The maximum sewer fee will increase to $600.

The water, sprinkler and sewer fees will automatically be increased each year at the start of October according to the consumer price index with a minimum increase of three percent.

The increased rates are expected to bring in around $260,000 in additional revenue for the upcoming fiscal year, which begins Oct. 1. The $3 surcharge is expected to bring in $235,000 for the fiscal year.