Milbank’s ongoing water problems again took center stage during the regular meeting of the MIlbank City Council on Monday, August 10. The council approved a $20,000 proposal from Banner Associates to conduct a rate study. City officials said the study is necessary before they can move forward with plans to improve its municipal water system.
The study will not set new water rates, but it is designed to help determine what residents can reasonably afford and where Milbank’s rates fall in comparison to other communities. Officials said the issue is important because the city’s current rates are limiting its ability to qualify for a grant to fund a future water treatment project.
City officials stated Milbank’s water rates are among the lowest in South Dakota, and some funding programs will not consider an application until a community’s rates reach a certain level. They indicated some programs require a base rate in the $60-70 range. The information elicited a question from a resident who attended the meeting: “How are you going to convince people to pay more?” she asked. She also added, “I would be willing to pay more if the water coming from my faucet was better.” The exchange highlighted a problem the city has been wrestling with for years — how to pay for improvements while residents continue to deal with discolored water, sediment, and odor.
City officials acknowledged the frustration and also pointed out that Milbank residents went many years without regular increases in their water bills. At the same time, they said, the cost of maintaining and replacing infrastructure continued to climb. A representative from Banner and Associates stated construction costs have risen much faster than costs in other segments of the economy.
The city has been studying its water system and possible solutions for many years. A study completed in late 2024 looked at both water and wastewater and recommended exploring the idea of building a new water treatment facility. An early concept for full treatment carried an estimated price tag of approximately $64 million. The city later looked at a scaled-back version of the project at $34 million before they tabled it to continue searching for a more affordable option. Officials are now working toward a project with an estimated cost at approximately $10 million. Finding outside funding for that project remains one of the biggest challenges.The city has been placed on the state water plan and has been pursuing grant opportunities.
Milbank currently chlorinates its water to kill bacteria, but the system does not provide full water treatment. Iron, manganese, and sulfur are among the minerals city officials said contribute to discoloration, sediment, and odor..
Water Department employees are also trying to get a handle on where residents are encountering red or discolored water. Residents are encouraged to contact the City as soon as they begin experiencing problems instead of waiting until the problem becomes severe.
“If you have a red water complaint or a complaint, call the office,” a city employee told the council. “I can’t flush what I don’t know.”
“We definitely want to know where the complaints are,” councilman Kyle Schwandt said. “We want to start mapping them and get kind of an idea of where the issues are occurring.”
One resident told the council her daughter lives on a street where new pipes were installed approximately two years ago, but her water problems are worse than those at the attendee’s home that has much older infrastructure. She said her daughter has a whole-house filtration system, but still sees material in her water. City officials acknowledged that ascertaining why some homes experience more problems than others has been difficult.
Parks Projects Reconsidered- New Ones Up for
The council heard an update on how approximately $1.6 million in previously-issued bond money might be used for improvements to Milbank’s park system.
About $1.2 million had been earmarked for an expansion of the Unity Health and Fitness facility. Current construction estimates, however, put an addition – even unfinished –at approximately $350 to $400 per square foot. Officials said that would provide for only about a 40-by-40-foot addition and would not make enough of an impact to justify the investment.
A Parks committee subcommittee recommended replacing the city’s aging parks maintenance shop and relocating it near Lake Farley. The current shop does not have a working indoor bathroom so employees must use an outhouse. The building itself is also in poor condition. The estimated cost of replacing the shop is approximately $700,000.
Other priorities include adding restroom facilities near the playground at Pribyl Park, paving the parking area near the soccer fields to help address erosion, and making improvements at Hurley Park. This could include work on the aging log cabin at Hurley Park.
The council also approved applying for a separate $2 million Rural Health Transformation Program grant. If awarded, the money could be used to install artificial turf on soccer and flag football fields and construct a trail around the area. The grant would require no local match and the application does not obligate the city to complete the projects.
Hanson Chairs First Full Meeting
Monday’s meeting was the first full council meeting chaired by Mike Hanson, the newly appointed mayor.
Hanson was appointed following the resignation of former Mayor Pat Raffety. Because of the timing of the vacancy and South Dakota election requirements, Hanson will serve until an election can be held next year. In January, the council is expected to set an election date.
The council approved annual appointments required under Milbank’s form of government according to Steve Pendergrass. Pendergrass was reappointed as the city administrator, Cynthia Schumacher as the finance officer, Corey Hooth as police chief, and Dave Giesen as fire chief. Committee assignments were also made for council members.
Several ongoing construction and infrastructure projects were reviewed during department reports. Work on the Farley Park storm shelter is expected to be completed this month. HVAC balancing and testing are among the final items remaining. The industrial park project is slightly behind schedule, but is still expected to reach final completion in November. Work is continuing on the Seventh Avenue project. City officials reported the water and sewer portions are complete. Storm sewer work is approximately 75 percent finished. Design work continues on a recreation trail along Flynn Drive. The City hopes to submit 60-percent plans to the South Dakota Department of Transportation this month. The City is also moving forward with plans for standby generators at lift stations and repairs at the wastewater treatment plant funded by a FEMA hazard mitigation grant.
Residents will also see changes in the way the City communicates. The City of Milbank’s new website is scheduled to go live August 27. City employees will also transition to new .gov email addresses by the end of August.
The next regular meeting of the Milbank City Council is scheduled for 6 p.m. on Monday, September 14. One of the decisions expected during that meeting is the rate of the allowable property tax increase the city will charge in the coming year. The state-imposed limit is 4.2 percent.
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