By COLE REIF
Great Bend Post
Water and sewer rate increases were discussed thoroughly at the July 20 work session. The matter has been brought up in Great Bend City Council meetings since and the governing body spent just over 12 minutes discussing the topic again Tuesday night.
After discussion, the City Council voted 5-3 to adopt a 22% increase in water rates and a 33% increase in sewer rates for citizens.
The City of Great Bend hired Ranson Financial Group to perform a third-party analysis of the utility rates. City Clerk Shawna Schafer says it was pretty easy to tell the city was burying itself in a hole with water and sewer expenditures.
"During budget time, I always look at this," said Schafer. "During audit time, they look at those funds in great detail. Last year is where I noticed we were going to be losing lots of money if we continued spending the way we are in sewer."
The analysis revealed that if rates were not addressed, expenditures would exceed revenues by $2.5 million in water and $4.25 million in sewer by 2025. Therefore, staff recommended the large increases to go into effect Oct. 1, and 3% bumps for water and 3.5% jumps for sewer the next five years.
There was thought of allowing the raises to sunset following the five years, but Councilmember Cory Urban noted that could put the city in a similar position in the future with having to make a large increase.
"This plan will catch the reserve funds up to our expenditures, but we will be right back at this in five to 10 years again hitting everyone with 30% or more," said Urban. "If you adjust it for inflation over time, next time around we don't have 33% or 22%. We might have a 6% or 8%."
The council approved 3% annual increases to both bills following the five-year ordinance in an attempt to keep even with expenditures. The last water rate increase in Great Bend was 2014 and the most recent sewer rate hike was in 2017.
City Administrator Kendal Francis has stated in the past that replacement of water and sewer equipment has been deferred for a long time and the city is playing catch up.
The city also discovered the water meter charges nor usage rates for customers in the Westport Addition (Great Bend Municipal Airport area) have been adjusted since at least 1975. The approved plan will incrementally adjust water rates that bring Westport Addition customers in line with all other users by the year 2024. Great Bend water customers currently pay $2.54 per 1,000 gallons used. Westport Addition customers have been paying 63 cents per 1,000 gallons for at least 45 years.
New rates:
Water increase of 22% from $2.54/1,000 gallons to $3.10/1,000 gallons.
Sewer increase of 33% from $3.80/1,000 gallons to $5.05/1,000 gallons.
Listen below to the entire discussion on the water/sewer rate increases that were approved at the Great Bend City Council meeting Sept. 8, 2020.