Garden City council approves large water, sewer rate increase after public hearing

Garden City — The Garden City City Council on June 23 adopted an ordinance amending sections 53.03 and 53.04 of Chapter 53, Title 5 of the Garden City Code to raise rates and charges for water and sewer service, a move council and staff said was needed to stop an operating deficit in the city's water fund. Council member Witt moved and Council member King supported the ordinance; the measure passed 6-1.

City Manager Tim Gibbons told the council at a public hearing that the water fund requires roughly $12,200,000 in annual revenue to break even while current revenues are about $9,200,000. "We need to close the gap," Gibbons said, adding the city had used an earlier fund balance that was drawn down since 2017 and now is operating with no reserve and an amount owed to the general fund.

The change matters because the city lacks the reserve typically recommended for a municipal water enterprise. Consultant Brian Kamenmiller of Plant Moran, who presented to the council alongside Gibbons, said: "Everything that city manager Gibbon said is exactly right. The city has a a problem." Kamenmiller and Gibbons described the adopted plan as the least-painful option among several models considered.

Why it matters: The council…