City might increase sewer rates
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By KAREN MIKOLS
First, it was the trash rates.
Then it was the water rates.
Now, Hays City Commissioners are considering increasing the sewer rate.
"If we do nothing at this point, we lose money in 2011," Director of Finance Kim Rupp said.
That's because the city will have to make some upgrades and possibly an addition to the solid waste treatment facility within the next 10 to 15 years.
"They are estimating, depending on what we have to do, the price tag could range from $12 (million) to $22 million," said Brenda Herrman, director of public works.
Rupp said he researched several options, and city staff is recommending a 3-percent increase in sewer rates starting in 2009, with a 9-percent increase in 2018.
Another option would be to increase rates at 3 percent until 2018, jump to a 32-perent increase for that year, then resume the 3-percent increase.
"This option grows the slowest without getting too crazy," he said. "This enables us to support operations and cost."
Mayor Barbara Wasinger suggested a 4-percent increase to make the increase more palatable to those on a fixed income.
"The problem that I see when we do a 32 percent increase one year, or 9 percent one year is even though I don't anticipate being on this board at that time, I hate to put that on a future commission and push a large rate increase on our citizens," she said.
Rupp said with a 4 percent increase, the sewer fund would start losing money in 2025, but added a 6 percent jump in 2018 might be an option with Wasinger's proposal.
"Other cities waited until the last minute," Rupp said, and added the city should act sooner rather than later. "Paola is approaching 100 percent increase in year two."
Wasinger is concerned about an unfair onus for future commissions.
"My preference is to make it as steady as possible throughout the years so we don't have to increase it so drastically," she said.
The commission will consider formal action during next week's meeting on an ordinance that would allow the sewer rate to be set by resolution.
