Rochester, MN (KROC AM News) - The Rochester Public Utilities Board met Tuesday and approved the municipal utility’s electric and water budgets for 2016.

Both budgets include rate increases. RPU’s electric rates are scheduled to rise 1.7-percent at the beginning of the year as part of a three-year rate adjustment plan approved the last year, which boosted the electric rates 3.5-percent at the beginning of this year and will be followed by another 1.7-percent hike in 2017. It’s estimated the rate increase next year will add about $1.50 to the average residential customer’s bill.

The new RPU water budget includes revenues from a 6-percent rate increase that is called for under a three-year rate adjustment plan approved earlier this year that also calls for 6-percent hikes in 2017 and 2018. RPU estimates the average residential customer will see an increase of about 70 cents in their monthly bill next year due to the higher water rate.

The budgets and rate increases still need to be approved by the Rochester City Council.