Commission adopts $10 wastewater fee, discontinues water improvement fee; waiver rule tabled

The Liberal City Commission voted to adopt a $10 flat wastewater improvement fee that will be assessed on both residential and commercial accounts beginning April 1, 2025, and approved discontinuing the city's water system improvement fee.

The commission approved the $10 wastewater fee by a 4-1 vote after a motion by Commissioner Warren and a second by Vice Mayor Landry. Commissioners later approved discontinuing the existing water system improvement fee by a separate 5-0 vote on Resolution No. 2431.

City staff, speaking during the meeting, told commissioners the $10 fee is estimated to generate $852,000 in annual revenue if collected for a full year; because the fee would start April 1, staff said the first year's intake would be closer to about $500,000. Staff said the fee will help the wastewater plant address revenue shortfalls and reduce the risk of not having funds available to repair catastrophic failures in aging sewer lines. The staff presentation noted the city intends to keep the wastewater fee in place through the life of the loan repayment (staff stated the repayment term as 2037) but said the commission can discontinue the fee earlier if financial conditions permit.

Commissioners and staff discussed how the change affects customers. Officials said residential customers previously paid a water improvement fee of $6.25 and nonresidential customers $12.50; moving to a single $10 wastewater fee will increase some residential bills by $3.75 but reduce or hold steady some commercial bills. Staff said the city will perform an accounting change to credit the wastewater fund instead of the water fund, and that fund 05/20 would receive the revenue.

On the related proposal to carry existing water-fee waivers into the new wastewater fee structure (item 10), staff said customers who already receive a waiver under the housing program would be grandfathered and would not need to reapply. Melissa in Utility Billing confirmed to the commission that current waiver recipients would automatically be approved for the $10 wastewater waiver. Commissioners raised whether the waiver criteria should explicitly include veterans and low-income households as qualifying groups; staff said the current form on file was last year's water application and they would verify updated rules and present clarifications at the next meeting. The commission agreed that no final action would be taken on that waiver amendment at this meeting and directed staff to return with clarified eligibility language for approval at the next meeting.

Staff noted the accounting adjustment is straightforward'change the fee title and the GL account it credits'and said the shift will prevent duplicative fees being charged to customers. Staff also said they had reviewed applicable ordinance language and that discontinuing the water system improvement fee required only the commission's vote.

A minority dissent on the $10 wastewater fee was recorded in the 4-1 vote; the transcript did not identify which commissioner cast the lone no vote during the roll call.

The commission scheduled the waiver eligibility clarifications for a future meeting so the city can confirm whether veterans and additional low-income criteria will be explicitly included in the waived program.

Votes and next steps: The $10 wastewater fee (Resolution No. 2430) was approved, effective April 1, 2025. The water system improvement fee was discontinued by Resolution No. 2431. Staff will return at the next meeting with clarified waiver eligibility and proposed application language so the commission can take final action on the waiver expansion.