Kearney Increases Water and Sewer Rates

During a September 8, 2020 Board of Aldermen meeting, discussion continued to consider a 5% water and sewer rate increase.

Kearney City Administrator Jim Eldridge

In 2017, Larkin Lamp Rynearson conducted a water and sewer rate study to evaluate revenues and operational expenses, with a focus on future capital improvements for the water and sewer systems. Essentially, the recommendation was 5% annual increases in water rates and 20% annual sewer rate increases to be implemented over a 5 year period (the combined total recommended rate increase was approximately 10% per year.)

“While the Board implemented the 1st increase in 2018, they did not fully implement the 2019 increase, noting the full sewer increase is intended for the future sewer plant capacity expansion and didn’t have to be done immediately,” said City Administrator Jim Eldridge. “Nor is the full recommended increase being sought for 2020 either. We are recommending that [we call it a 5% increase, but it’s technically] a net 4% increase. We are not increasing the monthly service charge of $5.00. It would stay flat.”

At some point, when the City must expand sewer plant capacity (building a new treatment basin(s) per the master plan), we will face a substantial sewer rate increase – something the engineering recommendations were trying to avoid.

According to data provided at the September 8 Board of Alderman meeting, a 4% net increase was made in 2019, rather than the full total recommended increase of 10%. A similar increase made in 2019 is proposed to go into effect with the October billing. The reason a 5% rate increase becomes a Net 4% increase is there is No increase in proposed to be implemented on the Monthly Service Charges of $5.00 each for water and for sewer.

The water increase proposal was approved unanimously by the Board of Aldermen and will go into effect immediately. The increase should be reflected on the October 25th water/sewer bill.

KPGZ News - Brian Watts contributed to this report