Council tables acceptance of state water grant amid concerns over potential utility surcharges

City of Crooks finance staff presented a South Dakota Consolidated Water Facilities construction program grant for a planned Southeast Water Distribution Improvements project, outlining grant components and the remaining borrowing the city would need to complete the work. Tobias Shantz, the city's finance officer, told council the grant package included a sizable state award plus a separate DOT grant and said officials were still calculating how much the city would need to borrow to cover the full project cost.

Council members pressed staff on the potential household impact if the city moved forward. One council member asked whether the city would be committing to the project by accepting the grant; Tobias Shantz said, “I don't wanna speculate either here at the meeting,” and explained that the city must complete environmental review, bonding and rate‑restructuring work before final commitments. After extended discussion about surcharges, timelines and whether to wait for bond-counsel and detailed rate modeling, a motion to table accepting the grant until more complete financial information is assembled passed by roll call.

Why this matters: the improvements would add a second connection to an older supplier and fund major water/sewer work the city has prioritized; at the same time, staff warned that the financing could require surcharges that—depending on assumptions—could materially increase monthly bills for some customers over a multi‑decade repayment schedule. The council directed staff to return with precise surcharge modeling, bond terms and options for spreading costs (including sales-tax backed financing) before formally accepting the grant.