Hays commission approves tripling sewer rate over six-year period

option 1 for sewer rate increases — Hays residents sewer usage bills will increase from $13.83 to $36.44 a month over a six year period. (Click to enlarge)

By BECKY KISER
Hays Post

Sewer rates for Hays residents will begin going up substantially starting September 1 with a 17 percent hike.

Hays city commissioners voted four to one Thursday night to approve the increases recommended by Springsted, the company hired by the city to conduct a comprehensive study to determine the new rates.

The city plans a $30 million rebuild of the wastewater treatment plant as well as replacement of aging sewer lines—some are 75 to 100 years old. The upgrades to the wastewater treatment plant are mandated by the Environmental Protection Agency and the Kansas Department of Health and Environment, and must be in place by Jan. 1, 2018.

The average residential customer’s monthly bill will go from the current $13.83 to $36.44 a month over a six year period.

Commissioner Henry Schwaller’s motion for the second option–which started with a 15.5 percent hike the first year and allowed the sewer fund to dip below $500,000–was voted down.

“The ending balance will work itself out. It is on the edge of the city’s comfort level, but these are things (useage) we cannot predict. It meets the obligation for the state revolving loan fund and it gives us enough money to do the maintenance we need to do,” Schwaller said.

“There’s a certain amount our ratepayers can pay and a certain amount they cannot pay. Hitting them so hard up front is, I think, unconscionable and very difficult, and that’s why I will not support Option 1 under any circumstances, and I’m holding my nose on Option 2.

“I’d rather spread this out over a longer period of time. I understand the consequences of paying higher interest on the bonds–and it is pretty significant–but again, $2 million dollars 10 years from now is a lot less, particularly if we have inflation,” he concluded.

hdr — Stan Christopher of HDR Engineering, the city’s owner-representative for the rebuild of the wastewater treatment plant

Commissioners last night also accepted the wastewater facility plan presented by HDR engineering.

The city will apply for a Kansas Water Pollution Control Revolving Fund Loan in the full amount for the project of $30,260,000 with a 20 year amortization and interest/fees ranging from 2.15 to 2.25 percent.