Hormel Will Now Purchase Water From the City

FREMONT – After years of ongoing discussions and decision making, Hormel will now purchase millions of gallons of water from the City of Fremont.

At last night’s city council, one of the agenda items was a resolution to authorize Mayor Getzschman to sign a Water Purchase Agreement between the city and Hormel Foods Corporation. The agreement would have the City extend water piping and city water rates over a 5 year period. In exchange, Hormel will purchase city water, grant the city the necessary utilities easements, and upgrade their existing sanitary sewer line.

The agreement was previously approved by the Utility and Infrastructure board, and the resolution passed last night’s council meeting. The estimated monthly revenue to the city in the first year is $55,000 per month; in the second year, $63,000 per month; and, in years three through five, $68,000 per month.

Hormel uses approximately two million gallons of water per day – less than 10% of the city’s current daily water usage.