Nov 03, 2024

Russell sales tax for water reserve fund, R9 Ranch on Tuesday ballot

Posted Nov 03, 2024 1:00 PM


Russell city officials present information Tuesday night about the proposed 3/4 cent sales tax to build a water reserve fund. Russell and the city of Hays jointly own the R9 Ranch in Edwards County as a long-term water supply project. Photo by Becky Kiser/Hays Post
Russell city officials present information Tuesday night about the proposed 3/4 cent sales tax to build a water reserve fund. Russell and the city of Hays jointly own the R9 Ranch in Edwards County as a long-term water supply project. Photo by Becky Kiser/Hays Post

By BECKY KISER
Hays Post

RUSSELL — Residents of Russell will vote during the Nov. 5 general election on whether to approve a 3/4 cent sales tax.

The tax will be dedicated to building its water reserve fund and developing water sources and infrastructure at the R9 Ranch in Edwards County, which it co-owns with the city of Hays. 

Russell has been operating under a water warning since April 2022.

Russell owns 18% of the R9 Ranch, which was first purchased by Hays in 1995 as a long-term water supply resource. Russell bought in a year later, in 1996.

The estimated total cost of the project is now $140 million.

A public forum about the proposed tax and the R9 was conducted Tuesday night at the Dream Theatre, with information provided by interim City Manager Kayla Schneider and Randy Baker, water utility director. 

Also attending were Mayor Jim Cross, City Attorney Ken Cole, and several city council members and city staff who helped answer audience questions.

"Our Plant B failed about three years ago, and we had to spend $1.3 million of the water reserve fund to get it back up and running so we would have adequate water production capabilities," Cross said. "We really depleted that fund at that time. We started seeing the need [to build it back up]. Costs of the R9 project have just escalated." 

Current water sources for Russell are Big Creek, eight miles south of town, and the Pfeifer Wellfield, 23 miles to the southwest.

The Big Creek surface water is "susceptible to contamination and unreliable during drought," Schneider said.

Groundwater from the Smoky Hill River alluvium flows into the Pfeifer Wellfield. 

"The Smoky Hill River has an intermittent flow and is greatly influenced by drought," she said.

"Water conservation has become a way of life for us."

Mandatory restrictions are

• No filling/refilling of residential swimming pools• Outdoor watering for residential customers is limited to one day a week between 7 p.m. and 10 a.m.• No outdoor watering for commercial or industrial customers• No washing of vehicles, boats or trailers• No washing of building/structure exteriors• Industrial customers must reduce consumption by 15-25% of the average previous five-year period

Russell also offers free low-flow shower heads to its residential customers and rebates for the installation of low-flow toilets.

In 2015, Hays and Russell applied to change the water rights at the ranch from irrigation to municipal use and submitted a water transfer application to the state in 2016.

In February 2024, the cities received a favorable ruling for the transfer.

Along the way, the Water Protection Association of Central Kansas (WaterPACK) has filed numerous objections to the project. 

Regulatory delays have continued, and in early October, Russell and Hays filed a lawsuit against the Edwards County Commission, the Edwards County Planning Commission and several other parties, claiming illegal zoning practices designed to block the project southwest of Kinsley.

If the 3/4 cent sales tax is passed, it is estimated to generate at least $400,000 annually. It would go into effect on April 1, 2025, for 10 years.

Russell's total local sales tax is currently 8.5%.

If voters do not approve the tax, it's on to Plan B and Plan C,  Cross said. 

"We've talked about water rates having to go up 30 to 50%," Baker said. "There could also be a water surcharge. We don't want to have to do that."

Russell and Hays have jointly pursued state and federal grants and low-interest loans to fund the project. A meeting with FEMA concerning a grant opportunity is scheduled for today.

"Having a tax is never a good thing. ... The sales tax is the most fair tax," Cross said. "It would also be paid by visitors to Russell, and we get a lot coming off of I-70. .... If somebody buys off Amazon, Russell gets a share of that sales tax.

"Local property taxes are not in play in this proposal," he said.