City restores a 1.5% late fee on Wichita utility bills after council debate
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Summary
After a lengthy council discussion on cost recovery and customer hardship, Wichita City Council placed a 1.5% late-payment fee back on water, sewer and stormwater bills, rejecting staff's 5% recommendation.
The Wichita City Council voted 4–3 on Tuesday to restore a 1.5% late fee on delinquent utility bills, reversing a recent ordinance change that had removed late-fee authority.
Staff had recommended a 5% charge, arguing a higher late fee would better recover operational costs — including collection and bad‑debt expenses — and incentivize timely payment. Finance and utility staff presented data showing that while a 1.5% fee historically generated roughly $1.2 million a year, the water utility still expensed about $2.4 million annually in uncollected bad debt and roughly $350,000 annually in collection administration costs.
During council debate, several members said they were reluctant to increase the fee beyond an amount that would significantly burden lower‑income households. Opponents of a higher fee noted the fee is eventually borne by all ratepayers if uncollected debt forces higher rates. Supporters of a higher fee said it could reduce delinquencies and the overall burden on the utility.
Council adopted a substitute motion to restore the previous 1.5% late fee and placed the ordinance on first reading. That substitute prevailed 4–3.
Why it matters: The late-fee decision affects how the utility balances customer assistance and cost recovery. City staff runs two assistance programs funded partly by customer donations and a 0.1% water/sewer rate set aside; staff also said outreach to promote assistance options has increased in recent months.
What’s next: The ordinance returns for a second reading before becoming final; staff was directed to continue outreach on assistance programs and maintain existing payment-arrangement guidelines while the council monitors impacts.
