The Huron City Commission heard a detailed water and sewer rate‑study presentation from Banner Associates on Nov. 24 and agreed to delay final action until next Monday to allow commissioners and affected parties to review the recommended numbers.

City Engineer Brett Runge introduced consultants Tanya Miller and Taylor Fern of Banner Associates, who presented a 2025–2030 cost‑of‑service study for Huron’s water and wastewater enterprise funds. The consultants said their analysis identifies two rate options. Option 1 implements cost‑of‑service changes that produce larger near‑term increases; Option 2 (the consultant’s recommendation) postpones a significant 2028 water‑main project from the short‑term budget to lower near‑term rate pressure while still meeting reserve targets.

Banner presented specific figures: the recommended water option would raise in‑city usage rates to about $5.08 per 1,000 gallons in 2026 and to about $5.83 by 2030 under Option 2; consultants noted the 2028 water‑treatment rehabilitation and water‑main work were major drivers of capital needs. For sewer, Banner highlighted major upcoming projects including a multi‑year Dakota Avenue sewer replacement (about $4,000,000) and a wastewater pumping station replacement and rehabilitation (approximately $6,000,000 over two years). The recommended sewer option shifts more recovery to volume rates while moderating the monthly customer charge for smaller customers.

Consultants urged maintaining unrestricted cash reserves at no less than 50% of annual operating revenues, with a goal of about 75% by the end of the study period to stabilize rates and meet coverage ratio requirements for debt service.

Several commissioners and stakeholders requested one week to review the report and tables; Dakota Provisions and other large users were specifically discussed. Commissioner Clute withdrew a motion to accept the recommendations immediately and the commission then voted to defer final action on the rate resolution until next Monday so members can review the figures and ensure support for whichever option they adopt.

What happens next: staff will provide updated materials and commissioners plan to reconvene to vote on a rate resolution by the publication deadline needed for a Jan. 1 effective date if action proceeds.