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Wichita council narrowly approves higher water and sewer rate plan to bolster debt coverage
Summary
After a multi-hour presentation and debate, the City Council approved a multiyear water and sewer rate plan intended to maintain stronger debt-coverage targets. Council adopted option 3—aimed at 125% debt coverage—by a 4–3 vote, with members citing predictability and financing risk as reasons to choose the higher-option plan.
The Wichita City Council voted 4–3 on Dec. 2 to adopt a higher water and sewer rate plan for 2026 that staff said would provide additional debt service coverage and reduce future financing risk.
Gary Janssen, director of Public Works and Utilities, presented three options. Staff recommended a 2026 rate increase of 6.23% (option 1) to meet minimum coverage and offered option 2 (6.53%) as a smoothing alternative. Option 3 would raise rates further in 2026 to target an all-in debt-coverage ratio of at least 125%, giving the utility a larger financial cushion as it repays bonds for major capital projects including Wichita Water Works and the Biological Nutrient Removal (BNR) program.
Janssen explained drivers for the recommendation: rising operations and maintenance costs (chemicals, staffing and contractor use), nearly $900 million in CIP for water projects, and an anticipated loss of wholesale revenue starting in 2027 (estimated reduction of ~400 million gallons annually as Derby and Valley Center shift to local supplies), which staff project will reduce wholesale revenue by roughly $2.5 million per year.
Council members debated predictability, equity and the effect on lower-income residents. Councilmember Glasscock argued option 3 provided needed predictability and protection against revenue shocks; Vice Mayor Johnston favored annual review and vigilance; Councilmember Hoheisel pressed for protections for low‑income and fixed‑income residents. Staff emphasized assistance programs (H2O Care Fund, payment plans) and said the recommendation included phased hiring for BNR operations to mitigate immediate O&M impacts.
After discussion and friendly amendments (an October annual workshop and a proposal to pilot a 3-year plan), Councilmember Glasscock's motion to adopt option 3 for 2026–2030 and place the ordinance on first reading passed 4–3. Staff said the approved action places the ordinance on first reading and allows the city to proceed with the recommended rate option; council members asked for continued outreach on assistance and transparency about future rate decisions.
