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Huron commission accepts Banner Associates water and sewer rate study, adopts Option 2
Summary
The Huron City Commission voted unanimously to accept Banner Associates’ updated water and sewer rate study (Option 2), which phases a roughly 3.5% water usage increase and an 11–12.4% increase to sewer usage rates while preserving minimum reserve targets; staff said the plan spreads costs toward usage and maintains fiscal coverage ratios.
The Huron City Commission voted unanimously to accept an updated water and sewer rate study prepared by Banner Associates and adopt the study’s Option 2 recommendations.
City engineer Brett Runge summarized the study and said the recommended water usage increase under Option 2 is “about a 3 and a half percent increase across the board for [usage] rate,” with meter-charge adjustments of roughly 2–3% for smaller meters and larger phased increases for 4‑inch to 8‑inch meters. Runge said the recommendation seeks to maintain cash reserves at no less than 50% of operating levels during the study period and to move the system closer to the 75% reserve target by the end of the planning horizon.
For sewer, staff said the study shifts more of the cost burden to users by increasing sewer usage rates approximately 11–12.4%, while limiting monthly charge increases to roughly 2.5%–3.5% in early years. Runge also noted reductions to certain surcharge fees (BOD and total suspended solids) because the recent wastewater improvements came in at lower-than-expected cost.
Officials said the study accounts for anticipated increases in purchased water costs from Mid Dakota and projects positive year-end net positions and required coverage ratios across the study period. The commission moved, seconded and approved accepting the study; the roll call produced a unanimous approval (5–0).
The acceptance directs staff to proceed with the rate schedule and associated notices; specific rates and the multi-year schedule are included in the Banner Associates packet provided to the commission.
