Presentation on water, sewer rates on tap for City Council

Friday, January 15, 2021

McCOOK, Neb. — Robust water sales in 2020 netted the city 20.8% more in revenue than in 2019. That’s from a report that will be presented to the McCook City Council Monday night on the city’s water and sewer utility funds. PFM Financial Advisors, LLC, annually presents a cashflow report to the city on the water and sewer utility funds.

The report also recommends a 2.5% rate increase in water and a 3% increase in sewer rates this year.

The presentation Monday night on the water and sewer funds is for discussion only with no voting. The recommended increases would be implemented in May, according to the cashflow report and will need McCook City Council approval. The last water and sewer rate increase the council approved was in December 2019, with a 6% increase in water rates and a 3% increase in sewer rates.

The recommended 2.5% water rate increase for this year is lower than the 3.50% rate increase originally listed in last years’ analysis, a result of strong water consumption in 2020, the report said. Total water sales increased by 22.5% in fiscal year 2020, after decreasing by 6.9% in 2019. This resulted in a 20.8% increase in 2020 operating revenues from the prior year

The recommended 3% sewer rate increase is the same rate increase projected in the prior year’s analysis. Sewer usage increased slightly by 0.7% in 2020, after a decline of 1% in 2019, according to the report. Operating revenue for 2020 increased slightly over the prior fiscal year but has been relatively flat.

Water and sewer funds are separate from the city’s general fund and operate from customer sales.

The only item on the regular agenda is a discussion on having a special city council meeting for council members to tour McCook city facilities, so the council will have better understanding of the city’s day-to-day operations. The special meeting will be open to the pubic. This kind of tour was done in the past with council members, designated as a special meeting and open to the public.

Consent agenda items include:

- Approve an agreement with the McCook Humane Society that amends the contractual term to allow for automatic extensions on a yearly basis: the current agreement between the city and the McCook Humane Society expires in February 2021 and the new agreement will have the same provisions as the prior one. For 2021, the City of McCook is scheduled to pay $34,281 to the McCook Humane Society for its services, plus an additional $1,000 for expense adjustments. Services the shelter will provide include impounding animals, rabies clinics, kenneling of animals and other needed services.

The new agreement includes an automatic renewal clause, with the proposed contract renewed annually unless either party files written notice of their intent to terminate the agreement.

-Authorize Great Plains Communications to occupy city right-of-way for the installation of underground coax cable along the east side of Airport Road and authorize the Mayor to sign the Application to Occupy Right-of-Way.

-Receive and file information regarding the Sparq Data Solutions City of McCook’s Public Page for access to agenda and minutes for City Council, Planning Commission, and Board of Zoning Adjustment meetings.

The meeting Monday night is at 5:30 p.m. at city council chambers in the city’s municipal building.

To access the meeting via video conferencing, go to https://us04web.zoom.us/j/2470811045 ,  Meeting ID: 247 081 1045, password, 69001.

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  • Looks like the city needs to reduce the water and sewer rate with a 20% net profit. Instead of raising the rates it should be reduced by 10%.

    -- Posted by John T Herron on Sun, Jan 17, 2021, at 1:44 PM
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