By COLE REIF
Great Bend Post
In an effort to break even on expenses and build up a reserves fund for future projects, the City of Great Bend is expected to make significant water and sewer rate increases at the Aug. 17 Great Bend City Council meeting.
The City is proposing a 22% bump for water and a 33% increase for sewer starting in October. A consistent annual fee increase between 2%-4% after the first year to keep up with expenditures is expected.
City Administrator Kendal
Francis says updating equipment and getting revenue changes to meet the
expenses of the water system are long overdue.
"A mechanical plant, such as ours, is going to be higher cost to run the plant with electricity being a big cost," said Francis. "Replacement of equipment has been deferred for a long time. We will be playing catch up over a course of a sizable amount of time."
According to City Clerk Shawna Schafer, the last rate increase for sewer occurred in 2014 and the last update to water charges was 2017.
Through a five-year plan from Ranson Financial Group, the City of Great Bend plans to transfer $400,000 into the sewer fund and $165,000 into the water fund each year for capital projects and equipment. Even with the transfers, the City stands to lose $676,360 from sewer expenses in 2021 and a loss of $385,780 from water expenses if no rate increase is approved.
Francis says the city considered a phase-in
approach to the rate increases, but the city would still lose money the first
couple of years in the sewer department.
"Other options to phase it in at a lower rate would cause us to lose almost $650,000 the first two years before we start to break even," said Francis. "That phased in approach will cost us about half of our reserves."
According to the Kansas Department of Commerce, in 2019, a residential sewer
bill for 5,000 gallons averaged $29 across the state. Great Bend’s current rate
for 5,000 gallons is $26.54. The rate increase would make the average monthly sewer
bill of 5,000 gallons $35.30 in Great Bend. The new rate would still be lower than those in Salina, Larned and Hays.
Great Bend plans to release information to the community prior to the Aug. 17 to help educate the public for the reason of the rate increases, which include future upgrades.
Listen to the entire discussion below regarding the water/sewer rates from the July 20 Great Bend City Council work session.