Kiowa City Council talks water rate structure increase to help pay for new waterlines

Took action on the arctic blast electric bill

 


As crews start replacing nearly 100-year-old waterlines in Kiowa, Kansas, the city council is taking care of adjusting the water rates structure to help pay for the project. The $6.2 million project replaces not only the lines in town but also pipe from Kiowa's water wells south of Sharon and south down Tri-City Road (about 10 miles). The project is funded with General Obligation Bonds, by water customers, USDA loans, etc.

At a special meeting at the end of March council members discussed water rates for their customers. They approved adjustment rate increases annually. City Administrator Sam Demel said customer's monthly base charge for water is $17.94. That's for customers who have a water pipe no larger than three-quarter inch. If the diameter is larger than that, then their base capacity charge is $22.43/month.

Demel said in Kiowa 613 households have three-quarter inch pipe. While 62 accounts have pipes greater than that circumference.

In this first year of the project, the customer charge for 0 to 1000 gallons of water per month is $4.63. For every 1000 gallons used in a month, add another $4.63. The second year that cost/1000 gallons increases to $4.77. In year three, the cost/1000 gallons increases to $4.92.

The average residential monthly water bill in Kiowa is $38.79 and will increase to $47.00, Demel said. This is based on three year progressions of the past. Fixed costs such as insurance, supplies, etc., are expected to rise two to five percent.

The council will reevaluate the plan as needed. The new rate structure goes into effect for customers with April usage.

Council Declines Low-Interest Loan

Since the Arctic blast in February that resulted in drastically inflated natural gas and electricity prices, the council has considered how to best handle their bill. The City of Kiowa's electricity bill from the arctic blast with temperatures well below zero, totaled $134,000. Demel said that monthly bill to Kansas Municipal Energy Agency (KMEA) is typically around $20,000 to $30,000.

At this late March meeting Kiowa's City Council agreed not to apply for the low-interest loan available from the state of Kansas for cities affected by the unheard of pricing.

“A 4,000 percent increase is just wrong,” Demel said.

The last two meetings council members discussed numerous scenarios about whether or not to pay their inflated electric bill. Demel said they paid what their normal monthly bill would be plus 25 percent more. Kiowa paid around $41,000, Demel said.

The city administrator recommended reading an article in the Wichita Eagle this week regarding how one little Kansas town is handling the huge electric bill. With a population of about 500, the town of Mulberry is suing BP, former British Petroleum after they received a $53,000 bill for the month of February when natural gas prices skyrocketed during the widespread cold snap.

 

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