To provide for the growing community’s water use, add a needed water tower, and continue updating aging infrastructure, Sioux Center Municipal Utilities is considering adjusting water rates.
Proposed rate increases are being considered for 2025 and 2026 after evaluating the community’s anticipated growth, planned capital projects, and replacement of very old pipes, as well as inflation. This study indicated a significant shortfall if rates were not changed.
One of the largest planned projects these rates will help with is the addition of a third water tower, to be constructed in southern Sioux Center.
“We haven’t built elevated storage since 1986, and our community has changed a lot since then,” Utilities Manager Murray Hulstein said.
In 1986, Sioux Center’s population was roughly 4,600 people. Today, it is about 8,675 – nearly double.
“For many years, the DNR has told us in their reviews of our system that we should add more storage. They recommend having one day of overhead water storage, and our water towers do not meet that,” Water Department Head Harlan Kruid added. “This will be a great asset for our community.”
Sioux Center Municipal Utilities is also continuously expanding the water system as new areas are developed. That means installing new water mains and having the capability to meet increased water demand. Recently Sioux Center hit a new peak day: 1.8 million gallons used. High quality water from the Lewis & Clark Regional Water System helps meet demand while decreasing hardness, which can help residents save on salt purchases.
Parts of Sioux Center’s water system are 100 years old or more, and some pipes are deteriorating – prone to leaks and limited water flow. Replacing them helps prevent future more costly repairs and emergency repairs.
“You see us out repairing water leaks. Sometimes pipes have deteriorated to the point where we repair one leak, and the next section of pipe starts leaking,” Hulstein said. “We need to continuously work on replacing pipes to set Sioux Center up well for the future. We acknowledge this is a significant increase, but a necessary one.”
For an average home using 5,000 gallons of water per month, this would be roughly a $10 increase in 2025, beginning with the September bill for water used in August, and about a $6 increase in the summer of 2026. This represents a 20% water rate increase proposed for 2025 and 10% increase for 2026.
Water is only a portion of residents’ utility bills. Of a total bill, the two increases combined would reflect about a 6% overall increase.
The City Council approved the first reading of the proposed rate change this week. The proposal will be considered at two more council meetings, June 23 and July 14, before it would go into effect.
“A progressive and vibrant community needs to stay ahead of what is needed, and to do that, we need to invest in infrastructure to continue our momentum,” Mayor Dale Vander Berg said.
The Sioux Center Water Department provides quality water to more than 2,600 homes and businesses, drawn from local aquifers and the Lewis & Clark Regional Water System, treated to exceed all federal and state standards.
