Banner Associates recommends Option 2 for Huron water and sewer rates; commission defers final vote for one week

Banner Associates presented a comprehensive five‑year water and sewer rate study to the Huron City Commission on Nov. 24 and recommended Option 2, a plan that phases some capital projects to reduce near‑term rate pressure while still meeting financial targets.

Consultants Tanya Miller and Taylor Fern summarized system usage by customer class, the capital program (notably a major water main replacement and a planned 2028 water‑treatment rehabilitation), and two rate scenarios. Banner’s recommended Option 2 keeps meter‑size monthly charges aligned with cost of service while phasing a $1.61 million water main replacement out of the near‑term study window to reduce short‑term rate increases; under Option 2, consultants presented example in‑city water usage rates of roughly $5.08 per 1,000 gallons in 2026 rising to about $5.83 by 2030 and a similar set of sewer rate adjustments that meet the commission’s reserve goals.

Commissioners probed assumptions (cash reserve targets of 50%–75%, timing and inflation exposure around a 2028 capital spike, and impacts on major industrial customers such as Dakota Provisions East). A motion to accept the recommended Option 2 was made but then withdrawn for procedural reasons; after discussion the commission voted to defer the final decision until the next meeting so members could more closely review the numbers while preserving the timeline required for publication and a Jan. 1 implementation if approved. City staff will return with the resolution and any requested clarifications at the next meeting.

The presentation included detailed tables showing proposed per‑meter monthly customer charges, per‑1,000‑gallon usage rates for each customer class, projected end‑of‑year cash balances and reserve percentages, and comparative rates for similar South Dakota communities.