The first of what will be a series of utility rate increases in the next few years is making its way through the approval process with the Aberdeen City Council.

The board approved first-reading of an ordinance outlining 2026 fees for city services during its regular meeting on Monday, Dec. 15 at the Municipal Building. Final approval is set for Dec. 22. The ordinance includes higher rates for water and wastewater use and services, including:

A $1.60 increase to the flat monthly wastewater service fee, moving it to $15.25.
A 65-cent increase to the wastewater usage fee, moving it to $5.25 per 1,000 gallons used.
A $1.68 increase to the flat monthly water service fee to $22 on service lines of less than 2 inches, and a $2 increase to $34 for service lines that are exactly 2 inches. Rates for larger lines are also going up.
An 80-cent increase to $5.25 per 1,000 gallons used for residential and the first tier of commercial use.

Several other rate increases were included in the ordinance, including for parking tickets, building permits, solid waste collection and more:

The monthly solid waste fee is jumping $2 to $15.50.
Tickets for obstructing snow removal, parking in front of a fire hydrant and obstructing a fire lane or fire apparatus will all start at $100 and increase to $200 after 72 hours. Snow removal tickets currently start at $70 with fire hydrant and fire lane tickets at $50. They double if not paid in 72 hours.
Other parking-related tickets will increase $5 to $15 and double to $30 if not paid in 72 hours.
Building permits will increase from $30 to $35 for $0 to $500 of work. Fees are higher for more expensive work.

But, it was the utility rate increases that drew the most discussion. Mayor Travis Schaunaman started the conversation by asking about funding for Water Investment in Northern South Dakota, often referred to as WINS. The project is a cooperative agreement with WEB Water and BDM Rural Water. With it, Aberdeen is expected to receive 4 million gallons of supplemental water per day from the WEB system by 2030.

That connection to WEB’s system comes at a substantial cost, and Schaunaman asked if the rate increases over the next few years account for that eventual connection and expense.

MORE: Updated water, sewer study recommends five-year rate increase plan for Aberdeen

Finance Officer Jordan McQuillen said the new rates determined by a recent study do not include that work. But the study estimated the rate increases for Aberdeen to connect to WEB.

Tanya Miller with Banner Associates of Brookings crunched the numbers. For a $10 million bond, the boost would be about 47 cents a month per customer. It would be about $4.66 per month to cover a $100 million bond, she said.

Part of that cost could be offset. City Councilman David Novstrup said there are efforts to secure a federal appropriation of $20 million to help complete the connection to Aberdeen.

Councilman Rich Ward said the utility rate increases hurt, but appreciates the plan to spread them over time.

In other action, the council: 

Approved a $74,263 payment to Prahm Construction of Slayton, Minn., for work to replace the 10th Avenue Southeast bridge. Public Works Director Stu Nelson said that reflects an $18,000 deduction for liquidated damages because the project has gone beyond its completion date. Hopes are the bridge will be opened by the end of the week with temporary pavement in place until spring.
Approved seeking state Bridge Improvement Grant grant for concrete spall repairs and deck work on the Second Street overpass. The grant application is for three $37,500 projects and would require a 20% city match.
Approved the purchase of two Chevrolet Tahoe SUVs from Beck Motors of Pierre for $53,937 each. They are for the police department and will replace two older vehicles.
Approved the purchase of a Chevy Silverado half-ton pickup for the Public Works Department from Beck Motors for $42,465.
Approved one-year extensions to the three airport rental vehicle agreements with Avis, Hertz-Thrifty and Dollar Car Rental. Transportation Director Rich Krokel said the extension will give the airport time to seek bids from interested parties for new multi-year agreements.
Approved a professional services agreement between the city and Helms & Associates of Aberdeen to cover the environmental review, field survey and design of an 60-by-100-foot expansion to the snow removal building at Aberdeen Regional Airport and the relocation of the airfield electrical vault. The cost of the engineering work is $280,011 with 95% covered by federal funding. Construction is planned in 2027.
Heard from City Manager Dave McNeil that the city has been addressing complaints regarding icy streets and targeting problem areas. He said he hopes warmer temperatures will also help clear the streets.
McNeil reported that applications are being reviewed for the next library director and said five finalists will be presented to the library board.

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