City staff presented and the Valley Center City Council approved new water and sewer rates for 2026, increasing water charges by 7% and sewer by the standard 2.5%, while keeping base rates at 2025 levels.

City staff (identified in the transcript as Clint) told the council the city needs to build reserves ahead of a planned local water‑treatment plant expected to come online in 2027. "For 2027, our water treatment plant, if everything stays on schedule properly, will be completed most likely in 2027," the staff member said, noting the city faces engineering costs and additional operating needs.

Staff described several pressures driving the proposal: Wichita recently announced multi‑year rate increases ("they're going to raise rates 7.11% in 2026, 7.5% in 2027, and 7.7% in 2028"), Valley Center’s prior yearly increases have been smaller (about 4–4.5%), the city’s long‑term contract with Wichita has expired or is expiring, and the city expects a significant engineering bill (about $1,500,000) that was not included in a roughly $19,000,000 SRF loan. The presenter said it is possible the city will use up to $2,000,000 of water reserves in 2027 to cover engineering and transition costs.

Staff framed the 7% water increase as a way to "build up our reserves in the 2026 and 2027 years" so the city can assess actual treatment costs once the plant is operating and potentially reduce rates beginning in 2028. Using a local usage example, staff said the average Valley Center customer (about 6,000 gallons monthly) now pays $67.20 per month; a 7% water increase would add about $2.45 per month (roughly $26 per year) for that customer.

Council members questioned whether Valley Center still had negotiating leverage with Wichita after the expiration/transition of their prior contract. Staff and the city administrator said negotiations with Wichita have been put on hold pending new administration staff, and any renewed agreement will need to be in place by the plant startup in 2027.

After discussion, a council member moved (motion text presented to council) to approve the proposed 2026 rates — increasing sewer rates 2.5% and increasing water rates 7% for tiers 1–3 while keeping base rates unchanged from 2025. The motion was seconded and carried; the meeting record shows the motion passed without a roll‑call vote recorded in the transcript.

The council did not adopt additional ordinance language in the meeting transcript; staff said further negotiation with Wichita and actual plant operating costs will inform future decisions. The decision takes effect for the 2026 rate year as set during this meeting.