Recently the administration said they want to increase water rates again;
While the last round of rate increases adopted in 2018 ran through 2023 and ranged from 3 to 6 percent, it’s unclear what the new rate increases will look like.
That’s because the city is still calculating what level of rate hikes are necessary to keep up with anticipated population growth, operational needs and anticipated revenues, according to the Public Works Department that oversees municipal utility services.
“We are in the process of developing the operational and capital budgets which will inform the utility rate models,” Public Works Director Mark Cotter told The Dakota Scout when asked about the hikes, how far into the future they will be scheduled and why they’re necessary. “I expect to finalize this process in the coming weeks.”
One thing that happened during the Munson administration was an effort from city hall to encourage water conservation. Heck, the city was even giving away toilet rebates! If I recall the public works director, Mark Cotter, who is still the director, said the conservation efforts were making progress and people were consuming less water. Tack this onto growth and more users and you should be able to keep above water, no pun intended, without raising rates too much.
The problem is the water and sewer department depend on user fees to fund their operations, this is called enterprise funds. You pay your bill and that money goes directly to the maintenance and operation of the facilities. While enterprise funds are a good idea, they don’t always work well when you have major expansions because we also use the funds to pay down bonds for the facility upgrades. I have argued for awhile that major infrastructure projects should come out of the 2nd penny capital budget, like new water reclamation plants and bunker ramps (the Parking division which is ran on enterprise funds is also running lean probably due to paying bonds on a parking ramp that is not completed).
Some would argue that the enterprise funds should also pay down bonds, but I ask this question; “Do the wages for people who work in water reclamation come from the 2nd penny operations fund, like all other city salaries, or do they come from the enterprise fund?” I don’t know the answer to that question, but whether it is an enterprise fund OR sales taxes it is still coming from the same pot. With $80+ million in reserves we can easily takeover the bond payments for the water rec out of the 2nd penny and avoid any rate increases.
TRANSPARENCY WOULD SOLVE THIS PROBLEM
We could come to a compromise by sitting down with the public in public forums to discuss different options when it comes to increasing rates;
• More robust conservation efforts
• Using the 2nd penny or even reserves to pay down bonds
• Even higher rates for excessive users
We don’t need to raise rates, there are other solutions but we need to discuss them in a public forum and our city council NEEDS to demand it.
While I support the efforts of the sustainability folks to call out the administrations lack of transparency I asked someone yesterday, “Where were these folks 6 years ago when this guy rolled into office?” and this person replied, “Where were they in the last election?” Basically saying we let Paul and his endorsed candidates roll over the competition without a fight.
Transparency effects more then just climate change. It also has to do with utility rates, art censorship, insider bridge deals, free facade money to political donors, purchase agreements for welfare developer queens, banning drop boxes from public libraries, demolition orders from VIP neighbors and the list goes on.
We have a bigger fight then just sustainability when it comes to city hall, we have an communication problem. Once we shine light into city hall, most of these difficulties would be less difficult. The mayor says he wants a ONE Sioux Falls (still not sure what that even means) but he seems to be the only ONE not understanding that the ONE doesn’t stand for his bureaucrats but it stands for US, your constituents.