BROOKINGS Residents could be looking at some rate increases in the years ahead if proposals from Brookings Municipal Utilities become reality, and Brookings Health System is also facing uncertainty with Medicare and the federal One Big Beautiful Bill.
That was the word from councilors Bonny Specker and Brianna Doran at Tuesday nights City Council meeting, where they reported on what they heard at recent BMU and BHS meetings they took part in.
BMU findings
Specker attended BMUs board meeting on Sept. 8 and related what she heard, including a proposed electric rate average overall rate increase of 3.5% in 2026 and 2027, then a 5% overall increase in 2028 through 2032.
The past six years they have not had any rate increase in electric, she related. They do get their electric from both (Missouri River Energy Services) and (Western Area Power Administration), and both of those are increasing their rates, so thats leading to this increase that were going to be seeing.
Specker added that, when looking at comparable communites, Brookings electric costs are14% to 15% less than what the average customer is paying elsewhere.
Regarding telephone and video, she said BMU has no plans for local rate increases planned, and those current rates are comparable to area communities. Some streaming changes are coming in the future, though.
As for wastewater, a proposed average overall increase of 5% for 2026 and 2027 is planned, with a 3% increase in 2028 through 2033.
These rates are about 1.7% above the average cost of other communities, Specker said. Part of that, the higher rate, is that there is a future phase two upgrade in the treatment plant thats needing to be planned.
From 2023 through 2025, there were 10% annual rate increases in water rates; the proposal is to drop them to a 2% annual increase from 2026 through 2033.
That 10% increase in the past has been because of the new water treatment plant, she said. That plant is expected to be online the end of October and functioning.
Discussion will take place regarding an open house this coming spring, due to ongoing minor construction still taking place at new facility. The old facility is currrently planned to be taken down in December.
Lastly, Specker said BMU billing cycle and payment schedule changes are inbound, with information arriving in the mail explaining whats going on. Essentially, BMU is trying to synchronize different systems as far as billing and when meters are read.
BHS findings
Doran related some practical advice from her meeting: Were entering cold and flu season soon, so practice good hygiene, she related from the recent meeting of the BHS board of trustees. Theyre working on upcoming flu clinics for staff and public.
Beyond that, there was some discussion on Medicaid and the federal One Big Beautiful Bill passed by Congress and signed by President Trump.
Preliminarily, it does look like its going to have a fairly negative impact on the state as well as (Brookings Health System), Doran related. Theres a lot of multiple moving parts, with different things taking effect at different times. Theyre working on more discovery, so the total impact is unknown at this point, including the funds that will be directly allocated and others that will need to be applied for through the state and then allocated locally.
Furthermore, the Department of Social Services and South Dakota Medicaid is in the process of updating and changing their reimbursement methadology for payment to acute care hospitals within South Dakota.
This change is appearing to be about a $140,000 less reimbursement to the Brookings Hospital, she noted.
In closing, Doran shared a couple of other points:
The trustees are working on capital requests and budgets.
There was a small baby boom, with 45 births in a recent four-week span.
Other business
In other action at Tuesday nights City Council meeting, councilors:
Approved a bid of $517,533.99 from Rounds Construction Co. For the Capital Street and 32nd Avenue sanitary sewere and road project on a 7-0 vote.
This project involves the installation of a sanitary sewer line along Capital Street, as well as the repaving of both Capital Street and 32nd Avenue, from Capital Street to Sixth Street, according to a memo from the city. The new sanitary sewer on Capital Street will provide service to the city-owned Wiese property north of the (Brookings) Marketplace development, supporting future development of the site. In addition, both Capital Street and the affected portion of 32nd Avenue are in need of repair.
The bid was approximately 14% lower than the engineers estimate of $604,252.
In another 7-0 vote, agreed to a $217,800 contract with Clark Drew Construction for the public drop-off area z-wall construction at Brookings Regional Landfill.
This area will allow residential vehicles to dispose of garbage into roll-off containers, eliminating the need to drive up to the active landfill, according to information in a city memo.
The bid was roughly 38% lower than the engineers cost opinion of $350,000.
Approved, on a 7-0 vote, to provide $100,000 to initiate engineering and soil testing for a new downtown fire station. The preferred location is just west of the current facility at 309 Third Ave.
Agreed, on a 7-0 vote, to authorize City Manager Paul Briseno to enter into a 10-year on-sale liquor operating agreement with Reyes Aranda, who owns La Cantina Grill LLC, 2500 Sixth St. The license is being transferred from the former Applebees restaurant, which was at 3001 Lefevre Drive.
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