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Public invited to learn about proposed water, sewer rate increases
Meeting scheduled for Monday in golf course community room
By By Jill Meier
Challenger editor
Challenger editor
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EmailMay 21. 2010 6:00AM
Water and sewer rates in Brandon are going up this year, but before the increase is approved, the city will host an informational meeting for the public. The meeting is scheduled for 7 p.m., Monday, in the community room at the Brandon Municipal Golf Course. City engineers will give a brief presentation and then field questions from the public.
Increases are needed for both utilities to better prepare the city for current and future needs of the city enterprises.
“We’re taking the approach that we have some things coming ... and we have to start planning for those now,” said city administrator Bryan Read. “And it certainly doesn’t hurt to plead our case that we’re on the bottom of the rate schedule.”
In February, the council reviewed rate schedules of several area communities, discovering that Brandon is at the bottom of the rate schedule for both its sewer and water rates.
Council members began exploring the proposed increases in January, and since then, have fine-tuned the numbers to arrive at their proposed increases.
Water rates
Two specific needs for Brandon’s water department are a new water treatment plant tagged at $5.5 million and elevating a storage tank on the west side of the city, which is estimated at $2.5 million. Debt service on the new water treatment plant is estimated at $350,000 a year. Debt service on elevating the tank would cost $230,000 per year.
“We need to be generating enough money when the time comes,” Read said. “I’m not saying we’re going to use any of this money to offset these costs, but instead it’s to ramp up for future debt service.”
Read said that raising rates would help pay for a new water treatment plant, but the city still will likely need a bond to cover the cost. State revolving loans may be available, assistant administrator Dennis Olson said, but rates have to cover 110 percent of operation costs for the city to qualify for those loans.
“Within five to six years we’re projecting this will need to be addressed,” Read said. That need, however, hinges on city growth and water consumption.
The proposed rate hike will increase a typical 5,000-gallon per month residential bill by $5.85 per month, from $17.40 per month to $23.25.
“The council’s taken a very close look at equitable rates spread across its ‘users,’ ” Read said. “The program we’re using keeps track of the percentage of use by class and how much revenue it generates.”
Even with the increase, Read said Brandon did not “move up the rankings any on water costs.”
Councilors are also proposing a program where rates would go up 3 percent each January as a cost of living increase. Rates would start with the first gallon used.
Currently, residents pay a base rate for the first 1,000 gallons.
The last time city water rates were increased was in 2006.
Sewer rates
The Brandon council is proposing to increase sewer rates by $5.55 per month for an average residential user (5,000 gallons). Customers are currently paying $15.20 per month; the proposed hike would increase the charge to $20.75 per month.
Like the water rates, the sewer department also has current and future needs that need to be addressed.
First, Brandon is expecting a significant hike in fees from the City of Sioux Falls, who treats approximately half of Brandon’s wastewater. Sioux Falls is now conducting a regional wastewater study and the findings of that study will determine how much more Brandon will pay Sioux Falls for its wastewater treatment services.
“The study is being done to lay out some options for the surrounding communities ... and we should get some valuable information out of it,” Read said.
Brandon’s current contract with Sioux Falls runs through 2012.
“We’re anticipating a pretty healthy rate increase for 2013,” Read said, citing an additional $125,000 to $150,000 annual increase.
But Brandon has little choice in where to have their wastewater treated. Brandon’s lagoons were built for a population of 4,000 to 4,500.
Another project on tap is the reconstruction of the sanitary sewer lines and water mains in the Sylvan Circle area. Read said that project is tagged at about $900,000 and will begin this summer.
Relining of some of the city’s existing sewers in the core area of the city is also planned.
PROPOSED INCREASES
Water
Based on 5,000 gallons (residential)
Current rate: $17.40 per month
Proposed rate: $23.25 per month
Sewer
Based on 5,000 gallons (residential)
Current rate: $15.20 per month
Proposed rate: $20.75
Increases are needed for both utilities to better prepare the city for current and future needs of the city enterprises.
“We’re taking the approach that we have some things coming ... and we have to start planning for those now,” said city administrator Bryan Read. “And it certainly doesn’t hurt to plead our case that we’re on the bottom of the rate schedule.”
In February, the council reviewed rate schedules of several area communities, discovering that Brandon is at the bottom of the rate schedule for both its sewer and water rates.
Council members began exploring the proposed increases in January, and since then, have fine-tuned the numbers to arrive at their proposed increases.
Water rates
Two specific needs for Brandon’s water department are a new water treatment plant tagged at $5.5 million and elevating a storage tank on the west side of the city, which is estimated at $2.5 million. Debt service on the new water treatment plant is estimated at $350,000 a year. Debt service on elevating the tank would cost $230,000 per year.
“We need to be generating enough money when the time comes,” Read said. “I’m not saying we’re going to use any of this money to offset these costs, but instead it’s to ramp up for future debt service.”
Read said that raising rates would help pay for a new water treatment plant, but the city still will likely need a bond to cover the cost. State revolving loans may be available, assistant administrator Dennis Olson said, but rates have to cover 110 percent of operation costs for the city to qualify for those loans.
“Within five to six years we’re projecting this will need to be addressed,” Read said. That need, however, hinges on city growth and water consumption.
The proposed rate hike will increase a typical 5,000-gallon per month residential bill by $5.85 per month, from $17.40 per month to $23.25.
“The council’s taken a very close look at equitable rates spread across its ‘users,’ ” Read said. “The program we’re using keeps track of the percentage of use by class and how much revenue it generates.”
Even with the increase, Read said Brandon did not “move up the rankings any on water costs.”
Councilors are also proposing a program where rates would go up 3 percent each January as a cost of living increase. Rates would start with the first gallon used.
Currently, residents pay a base rate for the first 1,000 gallons.
The last time city water rates were increased was in 2006.
Sewer rates
The Brandon council is proposing to increase sewer rates by $5.55 per month for an average residential user (5,000 gallons). Customers are currently paying $15.20 per month; the proposed hike would increase the charge to $20.75 per month.
Like the water rates, the sewer department also has current and future needs that need to be addressed.
First, Brandon is expecting a significant hike in fees from the City of Sioux Falls, who treats approximately half of Brandon’s wastewater. Sioux Falls is now conducting a regional wastewater study and the findings of that study will determine how much more Brandon will pay Sioux Falls for its wastewater treatment services.
“The study is being done to lay out some options for the surrounding communities ... and we should get some valuable information out of it,” Read said.
Brandon’s current contract with Sioux Falls runs through 2012.
“We’re anticipating a pretty healthy rate increase for 2013,” Read said, citing an additional $125,000 to $150,000 annual increase.
But Brandon has little choice in where to have their wastewater treated. Brandon’s lagoons were built for a population of 4,000 to 4,500.
Another project on tap is the reconstruction of the sanitary sewer lines and water mains in the Sylvan Circle area. Read said that project is tagged at about $900,000 and will begin this summer.
Relining of some of the city’s existing sewers in the core area of the city is also planned.
PROPOSED INCREASES
Water
Based on 5,000 gallons (residential)
Current rate: $17.40 per month
Proposed rate: $23.25 per month
Sewer
Based on 5,000 gallons (residential)
Current rate: $15.20 per month
Proposed rate: $20.75
|
Residents of Brandon are encouraged to attend the public meeting Monday at the golf course to learn about the proposed water and sewer rate increases. Challenger file photo |  |
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