GAS — Council members tabled consideration of a water rate increase Tuesday evening, until it is determined whether the city will have to honor a raise in Iola wholesale rates. Gas purchases its water from Iola.
Gas signed a 30-year contract with Iola in 2001, which limited raises during its life to six, all of which have been exercised. Iola raised rates recently by 3 percent and notified Gas. In response Gas City Attorney Ross Albertini wrote a letter to Iola, noting expiration of raises.
“I haven’t heard back from yet,” Albertini announced.
Regardless, Gas intends to raise its rates, in part to replace a leaky section of two-inch line along U.S. 54 at feeds homes in East Lawn.
“We can wait another month,” said Mayor Darrell Catron.
Council members agreed to hire Randy Latta to do painting at the Gas Community Center. Volunteers have raised more than $1,100, through rummage sales and meals, and will be asked to foot $500 of costs. The city will pay the remainder, expected to be about $1,500.
With budget-making time drawing near, it was decided to include new air-conditioning for the center in the spending plan, with estimated cost of $17,000.
In 2017 county and municipal budgets will be limited to local tax increases of no more than the rate of inflation without a referendum, which prompted City Clerk Rhonda Hill to propose raising the general fund levy by 3 mills. The current rate is 29.379 mills and “it hasn’t been raised in years,” Hill said.
A levy of 3 mills would raise $5,310 at the city’s current valuation.
