City Council urged to raise sewer, water rates

McCOOK, Neb. — The McCook City Council will be asked to approve a water rate increase of 6% and sewer rates by 3%, at the regular meeting Monday, 5:30 p.m. at city council chambers in the Municipal Building.

The water increase is recommended to cover inflation, staff wages, capital projects and to avoid larger increases in the future, according to the city manager’s report. The sewer rate increase is recommended to cover inflation, capital projects and maintain a healthy bottom line, according to the city manager’s report for Monday’s meeting.

The increases, as city ordinances, must go through three separate readings before being enacted, with the first reading Monday night. If approved, the rates would likely go into effect by May.

Both increases are recommended by the financial advisory firm, PFM Financial Advisory LLC, which will present a report via Zoom at the council meeting Monday night. PFM annually presents a cash analysis of the city’s water and sewer departments.

Water and sewer rate increases were approved by the council last year, with a 2 1/2 % increase in water and a 3% increase in sewer.

The 6% increase in water rates will collect $2.4 million in revenue for the water department, using water sales at 70 million cubic feet. Last year, 80 million cubic feet were used, but the estimate for this year was more conservative, due to annual averages and if drought conditions continue and water restrictions are put into effect, the city manager’s report said. 

Under the increase, the ready-to-serve fee would increase by $1.29 to $19.49 per month. The price per cubic foot would also increase, with the first 5,000 cubic feet increasing by 11.5 cents and usage above 5,000 feet, increasing by 8.5%.

For sewer, the base fee for residential customers would increase from $17.03 to $17.541 per month or about 51 cents. Commercial fees would increase from $24.81 to $25.554 per month or about 74 cents. The fee for using more than 333 cubic feet will also increase by 3%, from $3.677 to $3.787.

The increased rates will not generate additional revenue for the sewer department but maintain a steady revenue stream if sales drop to an anticipated 31 million cubic foot range. The city’s manager report said if sales remain at or near 33.9 million cubic feet, revenue to the sewer department could increase as much as $45,000.

The only regular agenda item Monday night is for the council to determine a date for a town hall meeting on the city swimming pool. The town

hall meeting previously scheduled this week had to be postponed due to a medical emergency related to the presenter, Kyle McCawley. McCawley is an engineer with Lamp Rynearson, the company the city has contracted with for pool improvements.

Consent agenda items are approved in one motion unless pulled for a separate vote and discussion. Items up for approval are:

-- Appoint the following to the health insurance brokerage consultant committee: City councilmen Gene Weedin and Jared Muehlenkamp, City of McCook human resource director Lilia Dumas, City clerk Lea Ann Doak, City manager Nate Schneider, Jeff Crick and Sean Wolfe.

-- Terminate agreement with Quick Med Claims (QMC) and enter into an agreement with One Billing Solutions for ambulance billing. The city entered into an agreement with EMS Billing Services Inc. of Omaha, Neb., in August of 2000 for third party ambulance billing services. That company was acquired by Quick Med Claims of Pittsburgh, Pa. The city manager’s report said the company is focused on larger accounts and smaller accounts such as McCook’s don’t get the customer service that was previously provided. One Billing Solutions of Omaha, Neb., contacted the city and expressed interest in providing ambulance billing for the city. The terms of One Billing Solutions and the current provider are the same. It will be compensated on a monthly basis of 15% of amounts actually collected by the City of McCook, as the McCook City and Volunteer Fire Department.

-- Approve the bid from Shelco Construction of Elsie, Neb., in the amount of $558,400.35 for the North Cherokee Paving Project and the alternative bid in the amount of $269,951.55 for the East 1st Street Overlay.  This was the only bid received for the project. This project was approved last fall by the City Council in the One Year Plan.