BROOKINGS – Average residential customers can expect to pay about $1.84 more per month on their Brookings Municipal Utilities bills next year if proposed water and wastewater rate increases are approved by the BMU board in November.

But the city-owned utility doesn’t plan to change electric or telephone rates for the coming year.

The BMU board is also proposing a 2% increase in internet rates and a 5% rate increase for video services for Swiftel Communications customers in 2021.

The city-owned utility company expects to transfer more than $2.45 million to the city’s general fund next year.

The transfers, along with anticipated rate changes, revenues and expenditures, will be discussed at 1 p.m. today, Tuesday, Oct. 13, when the BMU board holds a public hearing on the 2021 budget.  

Highlights include:

• Electric: Electric rates are to remain unchanged in 2021. The electric budget includes major expenditures of $2.9 million primarily for infrastructure development throughout the community, completing a substation conversion and continuing with the meter replacement program and street light conversions. Net income is expected to be $3.5 million, and the fund will transfer $2,255,000 to the city’s general fund.

• Water: Water rate increases are necessary to plan for future treatment plant and water tower renovations and replacements, continue with a meter replacement program and to cover increases in operating and maintenance expenses, BMU officials say. Capital expenditures are budgeted at $4.2 million. The proposed 2021 residential usage charge will go up 3 percent, resulting in an increase of about $1.10 per month for the average residential customer. The fund is expected to show a net income of about $2.9 million.

• Wastewater: The proposed wastewater rate increase averages 2%. The average residential customer will see an increase of about 74 cents per month. Capital expenditures will total $3.3 million for collection system improvements, including a large collector rehabilitation and follow road development plans. The fund is expected to generate net income of $1.3 million.

• Telephone: The budget includes proposed plans for a 2% increase in internet rates and a 5% rate increase for video services for Swiftel Communications customers in 2021. There are no local telephone rate changes. Major telecommunications capital expenditures will total $4.6 million consisting of a variety of electronic systems and infrastructure improvements. Net income is expected to be about $4.2 million, and the fund will transfer $200,000 to the city’s general fund.

The board will take action on the proposed 2021 budget at 1 p.m. Monday, Nov. 9, at BMU. If approved, rate changes would take effect Jan. 1, 2021, and would be reflected on the bills customers receive Feb. 1. BMU will provide additional rate details with the next billing.

Brookings Municipal Utilities is owned by the City of Brookings, and has provided telephone, electric, water and wastewater services to its citizens for more than 100 years.