Iola City Council members will be asked Monday to consider rate hikes effective immediately, and again Jan. 1, to help shore up the citys water fund.
The water rate issue has been discussed at length by the Council several times recently.
As it stands, the water fund will be roughly $288,000 in the hole by years end without a rate hike, City Administrator Sid Fleming said.
To help build up reserves, Fleming is proposing a 7.5 percent rate increase across the board for all consumers immediately. Another 10 percent increase would take effect Jan. 1.
On top of that, Fleming has proposed the city make its 2018 loan payment for construction of the water plant in 2005 with capital improvement funds and not the water reserves.
A third rate increase, in 2020, may also be coming down the pike in order to reach Flemings goal of eventually having $900,000 in the water fund reserves. Council members have suggested the city look at spending cuts between now and then to mitigate a third rate hike.
The 6 p.m. meeting will be at the New Community Building at Riverside Park.
The public is invited.
