Utility Rate Adjustments (2024-2027)

The City of Sioux Falls provides safe and reliable utility services at the lowest possible cost for customers.

Utility rates pay for operations, maintenance, equipment, and infrastructure projects. Rates are regularly reviewed to ensure utilities can continue their expected level of service while planning for future service needs. Over the next four years, the City of Sioux Falls will increase rates for four of its five utilities.

The Sioux Falls City Council approved the following rate increases on June 20, 2023. The new rates will go into effect on January 1, 2024.

Water Purification

The Water Purification division collects, treats and delivers drinking water to all Sioux Falls residents.

  2024 2025 2026 2027
Annual percent increase 6% 5% 4% 4%
Monthly cost increase* $1.73 $1.58 $1.34 $1.34
*Dollar amounts show the monthly cost increase to residential water customers in Sioux Falls, based on average consumption, 5,200 gallons per month.

Primary reasons for rate increase:

  • Lewis and Clark Source Water Expansion
  • Improve Water Purification Plant
  • Improve water main transmission system

Water Reclamation (Sewer)

Water Reclamation collects and treats wastewater from Sioux Falls and regional customers and returns it to the Big Sioux River, meeting federal and state regulations.

  2024 2025 2026 2027
Annual percent increase 6% 6% 5% 5%
Monthly cost increase* $2.29 $2.37 $2.14 $2.22
*Dollar amounts show the monthly cost increase to residential sewer customers in Sioux Falls, based on average consumption, 4,600 gallons per month.

Primary reasons for rate increase:

  • Improve system capacity
  • Replace and rehabilitate existing infrastructure
  • Expand for growth and development

Storm Drainage

Storm Drainage consists of infrastructure, like storm drains, pipes, and drainage ways, to protect people and property from damaging floods or excess water.

  2024 2025 2026 2027
Annual percent increase 4% 4% 4% 3%
Monthly cost increase* 20¢ 21¢ 22¢ 18¢
*Dollar amounts show the monthly cost increase to residential property owners in Sioux Falls, based on 7,500 sq. ft. Storm drainage fees are charged annually via county property taxes.

Primary reasons for rate increase:

  • Veterans Parkway Regional Ponds
  • Southwest Sioux Falls improvements
  • Improve drainage in existing areas

Sanitary Landfill

The Sioux Falls Regional Sanitary Landfill serves Sioux Falls and five counties, including Minnehaha, Lincoln, McCook, Turner and Lake.

  2024 2025 2026 2027
Price increase per ton of solid waste* $2.00 $1.50 $1.50 $1.00
*Dollar amounts show the price increase per ton of municipal solid waste. Landfill customers pay per ton and per visit to the landfill.

Primary reasons for rate increase:

  • Maintain and replace equipment
  • Improve Household Hazardous Waste Facility
  • Design and construct cell #5

City Light and Power

The City did not seek rate increases for City Light and Power.

City Light and Power serves electricity to about 3,000 residential and commercial customers in the central and northern areas of Sioux Falls. Half of its customers are public buildings.

This utility received a rate increase during the last cycle from 2020 to 2023. The utility is well-positioned for increased electric demand, focused on converting overhead power to underground, and will be constructing a new Light, Power, and Traffic building in the coming years to move away from the current and aging municipal power plant.

Utility Licenses and Fees

The Public Works department also reviewed the utilities' associated licenses and fees. Like rates, the City aims for license and fee revenues to cover the cost of service to customers, which supports the utilities in being fully funded.

One-time and annual licenses are issued by the Public Works department. Professional licenses include those for:

  • Building movers
  • Recycling facilities
  • Commercial/industrial wastewater discharge
  • Garbage, liquid waste, and medical waste haulers

Utility fees apply to new or altered utility connections, requested utility services, and landfill usage. Examples of fees range from water and sewer connections, meter charges and lab fees to charges for one-off items to be taken to the landfill, like mattresses, tires, and animal carcasses. Most fees are not upfront costs to individual residents, with the exceptions of landfill fees, which are based on individual usage, and late fees, which impact anyone who is tardy paying their bill.

The cost increases to licenses and fees are incremental, and the biggest impacts are to customers outside the landfill and other utilities' service areas.

View the changes below. Ordinances will be officially updated once rates go into effect in 2024:

50001 DEFINITIONS PROPOSED CHANGES

51006 MONTHLY BILLING

51009 LATE FEES 51010 ESTABLISHING FEES PROPOSED CHANGES

51032 NIGHT WATCH FLOOD SERVICE RATE PROPOSED CHANGES

51046 RES INSIDE CL 51047 RES OUTSIDE CL 51048 COMM INSIDE CL 51049 COMM OUTSIDE CL 51050 LA

51081 WASTEWATER CHARGES FOR SF LOCAL WASTEWATER CUSTOMERS 5108101 WASTEWATER CHARGES FOR REGIONAL

51100 STORM DRAINAGE FEE PROPOSED CHANGES

57047 RATES FOR USE 57048 WAIVER OF LANDFILL FEES PROPOSED CHANGES

110036 LICENSES ISSUED BY THE PUBLIC WORKS DEPARTMENT PROPOSED CHANGES

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