Iola City Council members will discuss Monday whether to approve hikes in the city’s water and wastewater rates. ALSO ON the agenda for Monday’s meetings are plans to add diesel oxidation catalyst systems to the generators at Iola’s power plant, and consideration of a bid to purchase a new one-ton work truck for the Electric Department.
A brief history:
Water rates were increased when the city opened its new water plant in 2005, which proved insufficient to cover all of the costs.
From 2008 to 2011, the water fund operated with a deficit, averaging $238,000 a year (15.6 percent), relying on transfers from other utility funds to stay afloat.
Rates were increased in both 2011 and 2012 so revenues would match higher costs.
However, after three years of dealing with the 2012 rates, it has become apparent they still do not match “the cost of basic maintenance of the sewer and water utilities,” City Administrator Carl Slaugh wrote.
Slaugh estimated the water fund will bring in about $2.075 million in 2015, while expenditures are pegged at $2.129 million, a difference of $54,000.
Another transfer from other utilities funds was necessary this year to cover two bond payments totaling more than $620,000 to the Kansas Department of Health and Environment, Slaugh noted.
On the wastewater side, there also have been major improvement projects in recent years that have taxed city’s resources.
“Going forward, there will be bond payments to make in addition to ongoing maintenance requirements,” Slaugh said.
As a result, the city will need to raise rates for both utilities, Slaugh concluded.
Council members will discuss the rates at 6 p.m. Monday at the New Community Building at Riverside Park. The meeting is open to the public.
Iola may see water rate hike
