City rate jumps draw protest

HUMBOLDT — Larry Reeves questioned Humboldt officials why water and sewers rates are going up with Oct. 10 billings.
The public discourse occurred during the council’s Monday evening public hearing for the city’s 2015 budget, an event that often draws more yawns than questions.
Reeves would have none of that.
He pointed out that a 20 percent jump — which will occur with water rates — “is a lot to my budget” and was coming about at a time when Humboldt “has fewer people and many are living on fixed incomes.”
Councilwoman Vada Aikins was succinct in her explanation of the water and sewer (13 percent) rate increases: “Utilities are supposed to be self-sufficient and they haven’t been in a long time.”
City Administrator Cole Herder tried to soften the impact by relating what a typical Humboldt resident will face.
“If you use 4 units of water, your water bill will increase $7.23 a month and your sewer bill will go up $4.95 a month,” he said, or $12.18 a month.
“That’s $150 a year, isn’t it,” said Reeves, more as statement than question.
No one argued.
Herder said the last water rate increase was in October 2006 and the last sewer increase Jan. 1, 2012.
“We’ve been transferring money from reserves (including those in the gas fund) since then,” he said, adding that there is financial good news in that gas sales this year already have surpassed what was anticipated for all of the year, meaning those reserves should grow more than expected.
In addition to the utility increases, council members finalized an increase of a touch over 8 mills for property tax support for the 2015 budget. The levy this year is 75.471 mills; 2015’s will be 83.555.
Herder said about 2.3 mills of the increase is just to keep the city’s financial keel even, since its assessed valuation dipped by nearly $200,000.
That is what it will take to raise the same number of tax dollars, Herder said. Next year’s valuation will be $6.923 million; this year’s is $7.116 million.
A levy of 1 mill raises $1 for each $1,000 of assessed valuation, meaning each mill will raise $6,923 with the 2015 levy. Overall, taxes for 2015 will total $578,434 to support next expenditures of $3.55 million. Other revenue comes from fees, utility sales and tax support from state and federal sources.
In addition to the 2.3 mills to deal with loss in valuation, Herder said taxes from 1 mill ($6,923) will support a traveling baseball exhibit from the Smithsonian Institute in Washington, D.C. in 2015.
“That leaves less than 5 mills in an actual increase in taxes,” Herder noted.
Herder said Humboldt started 2013 with a cash balance of $35,767, with its ending balance projected at $67,487. Instead, the actual beginning balance for 2014 was a meager $3,038.
“We made adjustments to the 2014 budget, and are projecting an ending cash balance of $45,723,” he said, with increase from the higher utility rates being a factor.
The Kansas cash-basis law makes it illegal for a governing unit at any level to spend more money in a year — calendar or fiscal — than it generates or carries over from the previous year, which makes a year-end balance an important component of financing.
Herder, in response to discussion about Humboldt’s flagging population, said there were 553 fewer utility meters than 20 years ago.
Population loss has been going on for years, he added, with Mayor Nobby Davis chiming in “no one knows when it’s going to turn around.”
“We’re working our tails off to find housing and businesses,” Herder said, allowing that he had been told several times by prospective residents they would move to Humboldt it if had affordable housing.
Herder also said he was diligently looking for ways to cut expenses without harming quality of life for Humboldt residents.

IN OTHER NEWS:
— Council members approved a contract with Jarred, Gilmore and Phillips, Chanute, to do Humboldt’s 2014 audit for $4,900, a $200 increase from 2013.
— Sunny Shreeve was re-elected president of the council, a role that would have her serve as mayor when Davis is absent.
— A grant of $18,000 has been approved by the Kansas Department of Wildlife and Parks for construction of restrooms at Neosho River Park. Aikins said $5,000 was on hand for the facilities and Monarch Cement Co. had promised $5,000 to help with construction.
— Herder said grants to aid with rehabilitation of housing were on cusp of being used, both for houses that would be remodeled and sold and upgrades of rentals.
— Jerry Daniels, who won the Republican primary for First District Allen County commissioner and with no formal Election Day opponent is the presumptive winner, introduced himself to council members. “I’m looking forward to working with you,” Daniels said, adding that he would be eager to hear about issues pertinent to Humboldt, Moran and rural areas in his district.