The Sturgis City Council approved the 2026 utility rate resolution at its meeting Tuesday, Jan. 20.
 The approved rates include no increase to the residential water base rate for 2026. Instead, the city will now include the first 2,000 gallons of water in the base rate, a change that will result in lower bills for approximately one-third of residential customers. Once usage exceeds 2,000 gallons, the per-1,000-gallon rate increases to $3.25 for residential customers and $3.50 for commercial customers, up from $2.52 and $2.83 respectively.
 Public Works Director Rick Bush said the new structure gives customers flexibility while meeting the city’s revenue requirements.
 “For example, during the summer months when I run my sprinklers every day, this would increase my bill by just over five dollars,” Bush said. “If I wanted to avoid that increase, I could water every other day. It gives people options.”
 The council approved no changes to sewer or sanitation rates for 2026. However, beginning Jan. 1, 2026, commercial sewer accounts will be billed correctly following the discovery of a billing configuration issue during an internal audit. No retroactive charges will be applied.

Bush also noted that availability fees – charged when a property is temporarily not using utilities – may need future review. In some cases, those fees are currently higher than the base rate due to historical rate adjustments made over time.
 “That’s something we can certainly look at in the future,” Bush said. “It’s not that the availability fee is necessarily out of line -  it’s simply how we got there.”
 Bush said the rates were adopted following a review of operating expenses, system maintenance, and future capital obligations, and were unanimously recommended by the Municipal Utility Board.
 “These rates are intended to maintain stability for the average user while ensuring sufficient revenue to support daily operations, long-term maintenance, debt service, and future capital needs,” Bush said.