The $2.00 monthly street lighting service fee will go into effect on the February 2020 utility bill.
The city pays a rental charge for the street lights, Xcel and Southeastern own the poles and is responsible for the maintenance and electricity. SDCL 9-39-1 authorizes municipalities to construct, operate, and maintain a system to provide street light facilities to residents. Further, SDCL 9-39-23 authorizes municipalities to fix reasonable rates, fees, and charges for the imposition of just and reasonable charges for the use and availability of street light facilities.
The electric bill for street lighting is approximately $100,000.00 each year which is paid for from the general fund. The $2.00 monthly fee will be used to offset this amount. The estimated $50,000.00 that will be collected over a one year period will allow the city to use that money saved in the general fund in other areas like street maintenance, parks, etc.