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Riley County approves roughly 6% rate increases for three small utility benefit districts
Summary
Riley County commissioners voted May 29 to raise rates for Terra Heights, Deep Creek Sewer and Hunters Island to build capital reserves and cover depreciation of water and sewer infrastructure. Public Works Director Evan McMillan said the increases aim to move fund balances toward recommended minimums; the board set the effective date for the
Riley County commissioners approved rate revisions for three small benefit districts—Terra Heights (sewer), Deep Creek Sewer and Hunters Island (water)—during the May 29 meeting.
Public Works Director Evan McMillan told the board the districts have not been building sufficient capital reserves and that recent operating results have left some funds near or below recommended minimum balances. McMillan said the district adjustments include accounting for depreciation of assets such as lift stations, pumps and valves so the districts will have funds available for component replacement and routine capital projects; he said the changes “do not cover the cost of fully replacing a system,” such as water mains, which would require a separate project and funding mechanism.
McMillan described the proposed increases as about 6% compared with 2024 levels for Deep Creek Sewer and Hunters Island; Terra Heights also required an increase to address valves and future dredging or lagoon maintenance needs. The board discussed timing for public notice and decided to implement the adjustments on July 1, 2025, to allow bill statements and newspaper-advertisement timelines to accommodate the change.
Commissioners approved each district’s revised rate schedule in individual motions. Staff said they would publish notices in the local newspaper, include notice on customer statements and provide updated billing details in June so July statements would reflect the new rates. McMillan said the county will reassess fund balances as it takes over more operations and should see some offsetting savings from consolidated operations.
Ending Staff will publish formal public notices, implement July 1 billing changes and provide the commission with periodic updates on district fund balances and capital needs.
