A pair of water rate increases approved in April by Iola City Council members, were rejected Tuesday after the Council was asked to vote a second time on the matter.
The rejection may trigger budget cuts that extend well beyond the water fund, Mayor Jon Wells and City Administrator Sid Fleming warned.
The second vote was necessary because of a state law that requires cities with eight-member city councils to have at least five affirmative votes in order to pass ordinances.
The April 23 vote was 3-3, with Wells breaking the deadlock or so he thought in favor of the rate hikes.
When given a second chance, Councilwoman Nancy Ford said shed had a change of heart after originally supporting the higher rates.
Ive received numerous phone calls, people asking me to reconsider, Ford said. Everything is going up and up, maybe too much, too quick.
That left only Councilmen Chase Martin and Michael Middleton in favor of the hike, while Ford, Ron Ballard, Aaron Franklin, Danny Mathew, Gene Myrick and Mark Peters were opposed.
Gentlemen, this will make budgeting difficult, Wells told the Council at the votes conclusion. Ill need you to start making some difficult decisions.
The rate hike was necessary, Fleming said previously, in order to cover a projected $280,000 water fund deficit by the end of the year.
Fleming agreed with Wellss assessment, that difficult choices must be made, including how to make this years $600,000 bond payment for the 2005 construction of the water plant, which is due within the next few days.
The higher rates would have allowed the city to make this years bond payment out of capital projects, with the expectation the money would eventually be repaid out of the water fund over the next few years.
The money still will be paid out of capital projects a budget item that primarily funds street upkeep but with no expectation it will be repaid.
You wont have money to repay it, Fleming said.
THE VOTE came after impassioned pleas from Iolans Louis Clark and Larry Walden, asking the council to leave the water rates alone.
Every time we turn around, its tax this, tax this, raise this, raise this, Clark said. I wish you guys would look at other things you could possibly do.
