Kevin Smith from the Sioux Falls Public Works Department says, “Or for the average residential user, maybe about $2 per month. But the money will go towards paying for our Lewis and Clark dues. All of those construction costs.”
Smith says the increase is needed to fund Sioux Fall's share of the pipeline project that will supply water to towns in South Dakota, Iowa and Minnesota. While the federal government is picking up about 80 percent of the project's tab, bringing water to the city by 2012 could mean raising rates for years to come.
“I think we'll probably see rate adjustments for the next few years, trying to keep up with the bonding requirements or paying off those bonds. But the future of our water supply is the Lewis and Clark Rural water system,” says Smith.
And even if the rate increase is approved, Smith says Sioux Falls residents are still getting a good deal. “I think if you look even at the communities even around the city of Sioux Falls, our rates are well below the region. Even with a $2 per month increase, we're still below anybody around us.”
The last increase approved in February raised prices by ten percent. The city council will hear the first reading on the water rates and a bonding issue to help fund the project tonight. The second reading will be in two weeks. If approved, rates won't change until after the start of the new year.
