HUMBOLDT — Water rates will increase 40 percent beginning in 2025 for Humboldt residents.
It could have been worse.
But the majority of city council members elected to take the conservative approach to addressing the massive $13 million replacement of water lines that is to begin next year by not hiking rates the full 67% as was suggested at last month’s meeting.
City Administrator Cole Herder told Council members at their meeting Monday evening that the water department’s budget is in sound shape, with a balance of about $551,000, lending him the confidence that they can begin 2025 with the lower rate.
“Our water plant is actually pretty healthy,” he said.
“Let’s go this round, and see how we do,” said Herder, suggesting the rates can be raised again next year.
Councilwoman Cindy Holinsworth preferred the more aggressive approach.
“I’m one of these people to say let’s take this bandage off and be done with it. Don’t come back next year and say it’s going to be hiked another 27%.’”
The difference is about $7 a month for the average household.
Council member Blake McDaniel asked if there was an advantage to charging the higher rate at the outset.
“It would raise more funds faster and put us in a better position for cash on hand to make the first payment,” replied Herder.
Even so, Council members were aware of the economic hardships of the higher rates, voting 6-to-1 for the 40% water rate increase in addition an 8% hike to sewer rates. Voting in support were Sunny Shreeve, Paul Cloutier, McDaniel, Sarah Hart, Otis Crawford and Jeffrey Marquez. Holinsworth was the lone nay vote. Council member Kent Goodner was absent.
Payments on the loan issued by the Kansas Department of Health and Environment begin one year after construction is complete. Herder estimates that will be mid-2026.
The monthly payments will be about $415,000 over the course of the next 40 years.
Of that, about $68,000 a year is set aside in a reserve to address ongoing maintenance and upkeep of the system including pumps, motors, vehicles, etc.
