Due to a pricing dispute, Newton Mayor Evelyn George says the Iowa Rural Utilities Association owes 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.

In a statement posted on the City of Newton’s website, Mayor George says the association is currently paying the city less than what it costs to provide the water. She adds the Iowa Regional Utilities Association has refused to pay a higher rate the City implemented in accordance with the contract between them.  

A cost-of-service study done by Bolten & Menk Engineering last year, puts the City of Newton’s costs to provide the association water at over three dollars per 1,000 gallons. The Mayor says the Iowa Rural Utilities Association is currently paying less than two dollars per 1,000 gallons, and has not raised that amount since 2019. George also says that the association is currently paying the City of Pella over four dollars per 1,000 gallons.