City Council OKs water, sewer rate hikes

McCOOK, Neb. — By a unanimous vote, the McCook City Council Monday night approved rate increases for city sewer and water customers on first reading.

The 2 1/2% increase in water and 3% increase in sewer “is the right way to go,” said Councilman Jerry Calvin, as the smaller increases “won’t make a huge impact on users.”

The yearly increases were recommended by Public Financial Management, who annually reviews the city’s water and sewer expenses/revenues, said Utility Director, Jesse Dutcher. The smaller, annual increases stave off a large increase that is needed after several years without one.

Rate increases “affect all of us,” Dutcher said, but some years are better than others. “Lea Ann (Doak, city clerk) and I remember the 45% increase in 2005,” he told the council.

The increases are to cover inflation and pay for capital improvement projects. The Water Department’s annual revenue for 2020-21 is estimated at $2.2 to $2.4 million, with surplus funds collected last year because it was an unusually dry year, Dutcher said.

He cited the rising costs of supplies and projects, with $430,000 for a new water pipe on West Fifth and half a million to replace the media in the water treatment plant.

Water revenue can fluctuate year by year, whereas sewer rates are set each year, Dutcher said. Water meters are read from December through February, with sewer rates calculated to usage. The new rates start in May and stay the same until the following year, he said.

The new rates must be approved two more times before they are put into effect. The new rates also include a $35 per load fee to rural sewage haulers after hours and on weekends at the wastewater treatment plant and a sewer tap connection fee of $150, increased from the current $50. Those increases are needed to cover costs of overtime and supplies, Dutcher said.

There are some instances when extenuating circumstances are taken into consideration if a customer has a huge water bill, Dutcher said. In those cases, if a customer can show there is a problem with a leaky toilet or water pipe, the bill will be amended based on previous water usage, he said.