Second of Two Water Rate Increases To Start Soon

July 26, 2022 2:08pm

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Providing for a growing community’s water use and updating aging infrastructure, Sioux Center Municipal Utilities water rates will have a slight increase this fall.

 

The rate change, which will go into effect in customer’s October bills starting with usage around Aug. 23, is about 5% overall, less for most residential customers. An average home will see about a $1 increase in their water bill.

 

“As Sioux Center grows and our water system ages, we need to continue to be able to provide for the community’s needs,” said Utilities Manager Murray Hulstein.

 

The new rates were proposed in 2021 by a professional rate analyst following a study and were approved then by the Sioux Center City Council, put into place over two years. The new rates are designed to better allocate water system costs among users and prepare for system improvements ahead.

 

The overall 5% increase in water rates is designed to help pay for:

  • System improvements and maintenance, including replacing aging water mains.
  • Future growth including new development and a new water tower planned for southern Sioux Center.

 

Sioux Center’s water rates are made up of two parts. First, all users have a fixed per-month rate that allows for the fixed costs of providing water to Sioux Center. Second, all users have a volume-related rate, which allows users to pay according to their use. The water rates, designed in the 2021 study, have adjusted the fixed and volume-related rates to help better allocate costs to users that have larger meter sizes and demand more from the system.