A dispute over unpaid water bills and water rates between the City of Newton and Iowa Rural Utilities Association, formerly known as Central Iowa Water Association, has been settled. Back in January, Newton Mayor Evelyn George said the Iowa Rural Utilities Association owed the City of Newton hundreds of thousands of dollars in back payments for water provided by the city. The Iowa Rural Utilities Association buys water from several cities to provide to their central Iowa customers. The City of Newton also claimed IRUA was paying the city less than what it costs to provide the water, and was refusing to pay a higher rate the City implemented in accordance with the contract between them. 

In the settlement, IRUA will pay the City of Newton $285,259 for water the Association purchased from January first of this year through April 30th. In addition, Mayor George says a new Water Purchase Contract has been approved, setting water rates for the next 20 years ending June 30, 2045.

“And both parties have agreed that we will release and have settled on all of the issues that both parties had. And any rate increase will be for Newton citizens and the IRUA, at a similar or less rate.”

The new 20-year Water Purchase Contract also sets maximum and minimum monthly purchase volumes for Iowa Rural Utilities Association.