Service Connection Fee

Service Connection Fee

When customers receive their water bill from their water supplier, they may notice that one of the items in the list of charges shows "water testing fee" or "state test fee." The fee is $9.72 per year per service connection served by the water supplier, as set by the Minnesota legislature in 2019. The amount on a particular bill depends on whether the water supplier divides the fee out by month ($.81) or quarter ($2.43) or charges it all at once ($9.72.) This fee is called Safe Drinking Water Fee, or service connection fee.

History of the Fee

The Minnesota Department of Health (MDH) enforces the requirements of the federal Safe Drinking Water Act (SDWA). In 1986, the number of regulated drinking water contaminants to be tested was at 23. By 1992 the number had increased to 83. There were no federal funds available to help with the increased costs for this additional testing. To help cover the new costs, the 1992 Minnesota legislature authorized MDH to asses a fee to community water suppliers that serve over 15 service connections. The fee was $5.21 per year per connection.

Over time the number of tested contaminants increased to 118. These include microbes, lead, pesticides, industrial chemicals, heavy metals, and raionuclides. The fee per service connection was increased to $6.36 in 2005.

Since 2005, costs increase 28% due to inflation alone. We have also faced added costs from addressing new threats to drinking water, like pharmaceuticals and harmful algal blooms. To address these additional costs, the Minnesota legislature increased the fee to $9.72 in 2019. This increase will go into effect January 1, 2020 (Minnesota Statutes 2019, Chapter 144, 144.3831.)

Collection of the Fee

Each community water supply owned or operated by a city, town or water user district informs MDH of the number of service connections they serve. MDH generates a quarterly invoice for that number of connections (Laws of Minnesota 1992, Chapter 513, Article 6, Section 2.) The water supplier collects the fee from each connection served and passes the funds on to MDH.

Services Funded by the Fee

The fee funds MDH's regulatory and technical assistance services for public drinking water systems. Our staff across the state builds relationships with drinking water operators that result in extensive knowledge, trust, and a willingness to take action before they violate safe drinking water standards. This cost-effective assistance results in over 99% compliance with SDWA standards year after year.

Approximately $12 million will be collected statewide annually. About $2.5 million is spent on lab costs for drinking water tests. The rest is used to support staff who conduct inspections, collect and analyze required water samples, and provide technical assistance, training, and support to enhance water supply system's capacity to meet the requirements of the SDWA.

MDH services are especially helpful to small, rural water systems, which have more difficulty meeting water standards. Because of smaller customer bases, these systems have fewer resources for testing, investigations, and physical improvements because of their smaller customer bases.

This work helps ensure that everyone, everywhere in Minnesota has access to safe and sufficient drinking water.

Updated Tuesday, 02-Jul-2019 09:08:13 CDT