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Kingman council approves water rate increases and capital fee adjustments
Summary
Council adopted Ordinance No. 2,001 after a public hearing: Option A imposes a 3.85% increase to base and volume rates, a 50% increase to capital renewal fees in the near term and adjusted miscellaneous fees to better reflect service costs; staff cited a $5 million main tanks/transmission project as a driver of capital need.
At a public hearing on May 19 the City of Kingman adopted Ordinance No. 2,001 to revise water base and volume rates, raise capital renewal fees and establish two new service fees. Staff said the action implements the council’s March notice of intent to consider Option A.
Tina Moline presented the water financial plan update and said operating cash reserves remain above the city’s 60‑day target, but capital renewal fund projections required a near‑term increase because a main tanks and transmission project exceeded initial cost estimates and was split into multiple phases. She said that project’s total cost had grown toward $5 million, a primary reason for the larger capital renewal fee increase in the early years of the schedule.
Under the approved option staff said base and volume rates would rise by 3.85% across meter sizes and customer classes, the capital renewal fee would increase by 50% in the next fiscal year and then level off, and several miscellaneous fees would be updated to recover direct costs for the customers who use those services. Moline gave an example that a typical inside‑city residential user with 3,000 gallons would see a monthly bill increase of roughly $4.06 (from $31.22 to $35.28) under the proposed schedule.
Public comment raised service reliability and affordability concerns. Penny Holden described repeated post‑construction leaks and asked whether the city would charge contractors for repairs; staff said finance now invoices contractors for damage when finance is notified. Eric Weston, who said he is on Social Security and planning to retire to Kingman, urged consideration of Option B to limit fee changes that most affect residents.
City Manager Walsh and staff explained the main tanks/transmission project purpose: to separate transmission lines from distribution lines to stabilize system pressures and reduce distribution stress, arguing the upgrade reduces long‑term wear across the system. After public comment and council questions, the council voted to adopt Ordinance No. 2,001; staff said the new rates would take effect July 1.
