Manhattan staff recommend 3% annual increases to water and wastewater rates to shore up reserves

Summary

City utility staff told commissioners during a June 24 budget workshop that a 3% annual rate increase for water and wastewater is recommended to maintain reserve targets, fund capital projects and meet regulatory obligations; commissioners said they were comfortable with the incremental approach and asked staff to return with annual requests.

City utility officials told the Manhattan City Commission on June 24 that they recommend a 3% annual increase in water and wastewater rates as part of the 2026 budget-development process to preserve fund reserves and support a multiyear capital-improvement program.

Kevin Niles, Director of Public Utilities, said the increases are intended to “maintain adequate reserve recommendations for financial stability,” help fund operations and capital projects, and ensure the city meets federal and state regulatory standards. He told commissioners Manhattan began 2025 with stronger-than-budgeted fund balances — about $12.6 million in the water fund and $12.5 million in the wastewater fund — but said those balances are projected to decline without steady rate adjustments.

Niles presented a forecast that shows a possible…

Manhattan staff recommend 3% annual increases to water and wastewater rates to shore up reserves

Summary

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