Iola water consumers will begin paying 7.5 percent more for water starting June 1, followed by another 10 percent increase Jan. 1.
The rate hikes followed an extensive discussion Monday among Iola City Council members, one which led to a split vote as to whether to approve the hikes.
The 3-3 vote sent the matter to Mayor Jon Wells, who voted in favor of the increase.
The Council agreed to postpone the hikes one month, from May 1 to June 1, at the request of Councilwoman Nancy Ford. I want to make sure were giving our community enough time to let it sink in, she said. She cited the Registers April 10 article, titled Expect water rate hike.
The article made it sound and read like this was still under discussion.
She voted in favor of the increases, and was joined by Chase Martin and Michael Middleton. Opposed were Ron Ballard, Aaron Franklin and Gene Myrick. Councilman Mark Peters was absent, as was Bob Shaughnessy, whose resignation from the Council was announced later in the meeting.
In addition to the rate hikes, Council members agreed to make the citys 2018 water plant loan payment of about $670,000 from Iolas capital projects fund instead of the water fund, with the stipulation the city eventually repay that money back into capital projects at some point.
The Council also has announced its intention, prior to shaping the citys 2019 budget over the summer, to give City Administrator Sid Fleming a series of proposed spending cuts.
THE VOTE came after another hours worth of discussion, focused on whether the city could get by with fewer transfers out of the water fund, or whether cuts could be found elsewhere.
Franklins opposition was based on his preference for rate hikes of 7.5 percent in June and another 7.5 percent next January, instead of the 10 percent that was approved.
Is it the citys position that each of our consumers can just find additional funds for (higher) rates? Franklin asked City Administrator Sid Fleming.
I dont know that its our position, Fleming responded. Id be interested in knowing, whats the Councils desire for an alternative?
Fleming spelled out the issues with the water fund, which have persisted since the water plant opened in 2005, without a subsequent rate hike to help make the loan payments until 2011.
Since then, maintaining the fund has been a struggle, despite subsequent rate increases in 2013, 2015 and 2016.
Mayor Jon Wells described the water fund as insolvent.
Even if we raise nothing and transfer nothing, well still come up about $100,000 in the red, Wells noted. Were losing money by selling at the rate we are.
