Small Town News

Harveyville water rates not covering expense

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If Harveyville's residents feel like they pay a hefty price for their water, gas and other utilities, they're right.

Despite having one of the higher water rates in the state, the city council members are concerned that the water fund is losing money each month.

Mayor Dustin Kuntz said he had a chart outlining water use, and anticipates having to look at water rates and most likely increasing those rates.

Council Member Henry Dreier said the costs of purchasing water, getting it to Harveyville and keeping the system maintained together mean the average household water bill needs to be about $45.

"To make things work, the average household water bill needs to be $43.50," he said.

Council members said the minimum monthly meter fee currently is $20, and that includes no water. Water is billed per unit used above and beyond the minimum.

Kuntz said some of the difference likely is water loss in the City of Burlingame's system that the Harveyville is paying for until Burlingame can reduce the loss in its system. Kuntz has encouraged council members to check with Burlingame and see if the water loss has been corrected so that Harveyville's rates could decrease.

He said another part of the declining fund is the difference between the original estimate on the cost of the new water system and the actual project cost, which was higher.

City Attorney Tom Barnes told council members they and the city do have an obligation to pay off their debt and to maintain the system, and to charge what it takes to do so.

Kuntz said another expense that may not be factored into the formula is that the city pays the Kansas Water Office for the right to use up to 7.5 million gallons of water annually, which is a separate payment from what is billed by Burlingame.

City Employee Randy Brown also said the city uses significant amounts of water in the maintenance of its own water and sewer systems to keep the systems flushed out and properly maintained.

As the council discussed, Council Member Louis Hall ran the numbers and said it looks as though the minimum meter fee should be at least $23.88 each month..

Kuntz said that could be rounded up to an even $24 for ease or up to $25 to provide a bit of cushion.

Council members asked whether the payroll formula, which pays city staff out of the water, gas, sewer and general funds according to percentage of time spent on each task, might be skewed too heavily toward water.

Hall said part of the selling point of buying water rather than running the city's own plant was the idea that less manpower would be involved.

Kuntz said those numbers could adjust, but another fund would have to pay more toward payroll, which ultimately wouldn't ease the burden on city residents.

Brown said even without running a water system, significant labor time still is involved.

"Even with getting water from Burlingame, you don't just turn the faucet on and walk away," he said. "Any time you add chemical you're spending time."

He said he would be happy to provide the breakdown of how much time he spends on each task.

Barnes told the council it needs to take action to increase rates soon.

"You can't continue to delay action," he said.

"Part of me feels like when we set these rates we believed the market would be adequate," Kuntz said.

He added that it seems the city has enough to pay off the debt each month, but the overhead expenses such as maintenance and management are preventing ends from meeting.

He said homeowners likely are not concerned with whether an increase comes on the water or gas bill because it comes out of their pockets regardless, but future councils will have to figure out the true cost of operating each fund.

Treasurer Debbie Converse said employee costs are divided between funds, with the dogcatcher/nuisance officer and other general help taken out of the general fund, but the treasurer, office staff and city superintendent salaries split between funds by percentages.

Kuntz said even if the percentages are slightly skewed from month to month, they are based on averages over the past several years, and it would take several months of data to accurately change the percentages.

Council Member Lester Kimball suggested that council members take the numbers home, look at them closely during the next month, and prepare to make a decision in February.

The council then discussed the gas system, which routinely is losing 9-10 percent each month, regardless of season.

Brown said he blames a lot of it on older meters which may run more slowly. He also suggested that the master meter where Eskridge sells gas to Harveyville should be recalibrated and certified.

Brown said the state doesn't want to see more than 6 percent loss in a system and he is working to find and recover about half the current loss.

He added that he sent in 15 meters to be rebuilt and expects to receive them this week.

Council members also thanked Brown for keeping the streets cleared off, and Brown credited Kuntz for being out and helping throughout the recent snows.

Brown also asked whether the council would like the large piles downtown moved to the fairgrounds before snow arrives again Wednesday, and council members opted to leave the existing piles, but move the new snow to the fairgrounds if needed.

Dreier asked the council to discuss the money the city is receiving from the sale of the city lake to George Anshutz.

"If we have our money from George for the sale of the lake, could we put it in the water department and put it against the water debt?" Dreier asked.

Kuntz said he believes the loan is at a fairly low interest rate - in the 5 percent range.

Dreier said his thought was that the payment for the lake could take about two years of principle off the loan and save a lot of interest over the long-term.

"That's something that probably should be looked at. To see the savings long-term on that," Kuntz said.

Kuntz said while talking about options the city also could consider the option of using the money as part of a matching grant for the city's streets.

The city has applied for a grant and Kuntz was under the understanding it would hear something by late December, but was told the date actually will be late in January.

"Really, you can leverage the money from the sale of that lake to your ability to get that grant," Barnes said.

Council members indicated both would be valid options and it would be worthwhile to see where more savings could be had. No action was taken.

Nuisance officer/dogcatcher Tyrel Buchmeier reported that in a couple weeks he will be deputized in Wabaunsee County and expects to be doing patrols in the Harveyville area.

"Is Doug (Howser, sheriff) comfortable with you still doing nuisance projects for us?" Kuntz asked.

Buchmeier said he would need to discuss it with Howser, but that Howser had asked that the city call him if it had any questions.

Buchmeier said he had not done much as nuisance officer this month due to the snow and weather.

Council members noted one area of town where parking has been tight and briefly discussed whether the city could have a no-parking zone on one side of the street in that area.

Kuntz suggested that could be addressed along with the street grant if the city receives the funds.

Kuntz also reported that the city's court went smoothly.



Copyright 2010 The Wabaunsee County Signal-Enterprise, Alma, Kansas. All Rights Reserved. This content, including derivations, may not be stored or distributed in any manner, disseminated, published, broadcast, rewritten or reproduced without express, written consent from SmallTownPapers, Inc.

© 2010 The Wabaunsee County Signal-Enterprise Alma, Kansas. All Rights Reserved. This content, including derivations, may not be stored or distributed in any manner, disseminated, published, broadcast, rewritten or reproduced without express, written consent from DAS.

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