Wastewater Rate Increase Approved to Fund Major Infrastructure Project
- Steve Jurrens
- 15 hours ago
- 2 min read
Northeast Radio SD News - Watertown, SD - The Watertown City Council has unanimously approved a resolution to amend the rate schedule for users of the city's wastewater system, effective February 1, 2026.
The rate increase is projected to be approximately $4.96 per month for the typical residential user.
City Manager Alan Stager explained that the increase is primarily driven by the financial demands of the city’s recent, massive wastewater treatment facility upgrade…
The rate increase is composed of two main factors:
1. Debt Service: Approximately $4.00 of the monthly increase is directly related to servicing the debt incurred for the $60 million wastewater facility project. Stager noted this is the largest project the city has ever undertaken.
2. Operating Costs: The remaining approximately $0.96 is based on a periodic rate study designed to cover increasing operating costs and ensure the wastewater enterprise fund maintains a healthy, sustainable balance.
During the discussion, City Manager Stager provided a brief explanation of the necessity and significance of the $60 million investment…
 The project, which was approved some time ago, will:
·  Increase the wastewater plant's capacity by an estimated 35% to 40%.
· Implement significant improvements to the plant's control and treatment systems.
·  Replace legacy plant assets that were nearing the end of their useful life, with the last major investment dating back to 1997.
Stager emphasized that from an economic development standpoint, the project is critical. The increased capacity is projected to support the city's growth well beyond 2035Â and accommodate a community of over 30,000 residents, providing the necessary infrastructure for sustained expansion.
Councilman Peters inquired about the estimated increase in revenue from the operating cost portion of the rate hike, which Stager calculated based on the number of users.
Following the discussion, the motion to approve the resolution passed unanimously.