Council opens discussion on probable sewer rate increases
February 12. 2010 6:00AM
Brandon city residents will likely see an increase in their sewer rates later this year.
It’s the second rate increase residents can expect to see in their city utility bills in 2010.
In January, the council set new water rates, which is expected to increase average water bills by $2.60 per month. The new rate schedule has not yet been approved by the council.
As promised, the council said they would also explore the idea of increasing city sewer rates this year, and they began that task at their Feb. 1 meeting.
City administrators said water and sewer increases will be implemented at the same time.
At their Feb. 1 meeting, councilors learned that Brandon currently has one of the lowest sewer rates. Based on 5,000 gallons, city residents pay $15.20 per month. Dakota Dunes is the cheapest at $14, while Canton commercial users pay $42.50 and residential users are charged $36 per month. Lennox is second on the list at $38.24 per 5,000 gallons.
Reasoning behind the rate increase is to generate money for three specific capital improvement projects. The first project is the reconstruction of the sanitary sewer lines and water mains in the Sylvan Circle area. Bryan Read, city administrator, said that project is tagged at about $900,000.
Core relining of some of the city’s existing sewers in the older areas of the city are also planned. According to the five-year proposal, the city would invest between $30,000 and $35,000 each year over the next five years.
The most expensive project on tap is the southeast sewer extension project from Sioux Falls. Read said that project could reach $4.5 to $5 million.
“Right now Sioux Falls is unsure of those costs,” Read said. “They’re doing a regional wastewater study and so we need to start looking at ways how to cover those costs. It just really depends on what we’d transfer.”
Similar to establishing new water rates, the council is again using the RateMaker software program, to come up with the new rates.
Gabe Laber, of Stockwell Engineers, offered some suggestions to the council how to fund these projects.
As proposed for the water rates, the city could generate $83,000 per year by raising the minimum rate to $7 per month for the first 1,000 gallons. An additional $35,000 could be collected by charging each apartment unit in the city a $7 charge, rather than just the one charge for the apartment complex.
The sewer fund could also gain additional money through growth and annual cost of living increases, Laber said.
“There are some things out there that you can do,” Laber said.
Read said development doesn’t pay for itself. “We’re looking a few years down the road into the future with those projects that we need to address,” he said. “And as the rates develop, we’ll certainly to get the information out to the people.”
The council will continue their discussion on increasing sewer rates at their Feb. 16 meeting.
In other business:
• The council denied a request from Beth Hanna, of Doodlebugs and Dinosaurs Preschool and Child Care Center. Hanna was requesting that the Center be allowed to park their bus on Eighth Street, although no parking is allowed on the street there and the length of the bus would violate the city ordinance.
“We’ve been parked there for three years prior to all those people coming here,” Hanna said, citing the recent addition of Tryon Gym and Ridgeview Place Apartments to the area.
“That was probably an oversight on the council at that time,” said Alderman Dan Mostek. “The bus is too long and creates too many safety hazards.”
Alderman Blaine Jones also reminded Hanna of city parking laws: a 72-hour parking limit and vehicle length restrictions.
• The council tabled action on establishing a lease agreement with the Brandon Area Food Pantry.
“We’ve had an unwritten agreement to help our citizens in their time of need, and unfortunately, there is a need now,” Mostek said.
The city had budgeted $46,000 to purchase a building for the food pantry in 2009, but renovations to the building have elevated the city’s costs to about $85,000.
The city also provides a building for the Brandon Valley Area Chamber of Commerce, and the council will review that lease agreement, so that both lease agreements will be aligned.