Mobridge Council approves new sanitary sewer rates and $23.05 monthly debt surcharge

The Mobridge City Council voted Nov. 12 to adopt resolution 25‑13, setting new sanitary sewer rates that include a $23.05 monthly debt‑service surcharge to repay a wastewater loan and an additional usage charge tied to October meter readings.

Council members debated a package of changes read into the record by Mayor Kim before taking votes. The resolution establishes a $23 base monthly fee for residential in‑city connections and adds a $23.05 monthly surcharge ‘‘as a debt service charge for repayment’’ to the borrower for the wastewater project, the mayor read. City staff said an existing $5.55 per-connection surcharge for a clean‑water state revolving loan remains in place.

Finance staff told the council the $23.05 amount is a condition of the funding: ‘‘That $23.05 is what the state of South Dakota says we have to charge in order to pay back that loan,’’ a finance staff member said during discussion. Officials also described a consumption component: the resolution sets a $1 per 1,000‑gallon usage charge based on each residence’s October meter reading; staff said that snapshot month was chosen because October is typically a low‑usage month and the city will review the usage charge each October, beginning Jan. 1, 2027.

City staff cited rising operations and maintenance costs, personnel expenses and insurance as reasons for the adjustment, saying the sewage fund is not keeping pace with current costs. The council approved the resolution by unanimous roll call.

What happens next: the surcharge will be segregated in the sewer fund for debt repayment until the bond is paid in full, officials said. The council indicated it will review the usage charge annually and adjust as needed according to the finance staff presentation.