Current Poll
| City schedules meeting for utility rate increase |
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| News - Spring Hill | |||
| Written by Chase Jordan | |||
| Wednesday, 03 February 2010 08:00 | |||
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After discussing the possibility of raising utility rates, city officials want the community to weigh in on the issue. Residents will have the opportunity to listen to a presentation on water and wastewater rate increases at 7 p.m. Thursday at the Spring Hill Community Center, 613 S. Race St. A resolution for 2010 water and wastewater rates is also on the agenda. “We want to get community involvement in the process,” said Finance Director Melanie Landis. She said the loss was due to the economy and other factors, such as a low number of building permits. City documents show the city having a deficit of $95,779 in the water fund and $225,352 in the sewer fund for 2009. During a City Council meeting Jan. 28, Landis presented two options to increase surplus in 2010. The first option involved increasing both water and sewer rates. The second option was to only increase sewer rates. City council members agreed to present the second option Thursday night. The option includes a monthly increase of $15.68 for the average user, which includes a $9 service charge. The amount is a 25 percent increase. “The reason for the increase is to provide adequate cash for monthly expenses and debt payments. At this point there is not a reserve in either fund.” Landis said. Increases are necessary in order to fund an anticipated $394,495 deficit in the wastewater fund. Landis said the increase is expected to offset the cost for 2010. Under the water budget, projected funds show a surplus of $56,739 (zero percent rate increase for 2010) and a surplus $29,859 for 2010 (25 percent rate increase) in the sewer fund. The city is also working to avoid defaulting on a loan from the Kansas Department of Health and Environment. “It would require action on the state’s part to rectify the situation if we were to default on a loan.” The city previously raised rates after receiving information from a study conducted by Springstead. Several council members questioned the accuracy of the report. Council President Steven Ellis talked about the importance of economic development. He also discussed looking beyond the state of Kansas and looking abroad for suggestions. Ellis was also displeased with the idea of raising rates again. “I will not vote on a rate increase until we have a plan in place,” Ellis said. Scott Snavely, council member, said he understands the sense of urgency to get the funds where they need to be. He said the increase “sucks.” Chris Leaton, council member, said everyone is going to be affected if rates increase. He was concerned about low income families. “I would like to see if there are any programs that we can work with for people that may have problems with the issue,” Leaton said. Council members said they would like to have discussions with residents about the issue. “I’m not looking forward to having 100 angry people here, but that’s what we signed up for,” Ellis said. In other city council business: City officials presented the revenue and expenditure budget update for the fourth quarter of 2009. The documents show a general fund revenue budget of $4,765,443 with a year-to-date revenue of $3,917,099. City officials budgeted $4,177,543 for general fund expenditures. The city received a year-to-date total of $3,840,740 in general fund expenditures. City officials approved the eastern redbud as the official tree for the city. A bid from Midwest Pool Management for the management of the Aquatic Center was approved Thursday. The amount of the bid was for $241, 891. The city received three bids. Jonathan Roberts, city administrator, said there are a few insurance issues they are still working out.
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