Sewer rate debate continues

Kim Rupp and Bernie Kitten discuss sewer rate increases with the Hays City Commission. — Kim Rupp, Finance Director, and Bernie Kitten, Utilities Director, discuss sewer rate increases with the Hays City Commission.

By BECKY KISER
Hays Post

Sewer rates in Hays will start going up soon.

City commissioners are scheduled to pick one of two options during their Aug. 13 meeting.

The city plans a $30 million rebuild of the wastewater treatment plant as well as replacement of aging sewer lines. The upgrades to the wastewater treatment plant are mandated by the Environmental Protection Agency (EPA) and the Kansas Department of Health and Environment (KDHE), and must be in place by Jan. 1, 2018.

Option 1 was presented and recommended July 16 by Patty Kettles of Springsted, Inc., a company hired by the city to conduct a comprehensive study to determine the rate increases. Springsted recommended the monthly sewer base and volumetric user rates be increased 17 percent August 1, 2015, 15.5 percent annually during 2016-2020, and 12 percent in 2021.

“The governing body, understandably so, thought those were pretty high adjustments,” said City Manager Toby Dougherty.

Commissioners asked for “other options to achieve the same thing.” After another round of research, city staff presented four other options during the Aug. 6 work session. Staff recommended Option 2 with the monthly sewer base and volumetric user rates increasing 15 percent September 1, 2015, another 15 percent annually during 2016-2020, and finally, another 12 percent hike in 2021.

Option 2 would allow the city’s sewer fund to drop below $500,000, something Springsted advised against. After other discussions, Dougherty, City Finance Director Kim Rupp and the city’s financial advisor felt comfortable about it. “We do have discretionary monies available if it dips down. We can supplement that on a one-time basis,” Dougherty said.

After Rupp presented Option 2 last Thursday, commissioners started re-thinking Option 1. “Option 2 is cumulatively 10 percent less (highest monthly fee) than Option 1,” Rupp explained, “from $36.44 a month to $35.05 a month.”

option 1 for sewer rate increases — Option 1 for sewer rate increases

Commissioners Shaun Musil and Lance Jones both said they now favor Option 1.

“I can go for a little higher increase overall,” Jones said. “You’re talking about a $1.50 higher more or less and we have a million dollars in the bank at the end of it (rate hikes).” Jones also pointed out the Option 1 hikes are still lower than those in Options 3 and 4.

Vice-mayor Shaun Musil asked that Options 1 and 2 be presented at the Thursday, Aug. 20 city commission meeting, with the expectation that one or the other will be approved and set into motion. Commissioner Henry Schwaller was absent from last week’s work session.

Hays residential users currently pay $13.53 a month for an average 500 cubic feet sewer usage, one of the lowest rates in the state. Click here to see the four rate options.