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Pawnee City council reviews water-rate study; proposes phased base-rate increases, vote set for Sept. 9

Mayor and City Council of Pawnee City · August 26, 2024
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Summary

A water-rate study concluded current rates do not cover water-system expenses; staff and council discussed phased base-fee increases to fund projects including a new well and meter replacements, with a council vote planned for Sept. 9 and a PER explained Sept. 23.

Randy Hellbusch presented a water-rate study to the Pawnee City Council at the Aug. 26 meeting, concluding that current water base fees do not cover ongoing system expenses and recommending phased increases to bring revenues in line with costs.

Hellbusch’s study recommended options that would gradually increase the monthly base fee over three years (a presented example moved the base from $32.75 to $40.25). Council and staff discussed a blended approach that would add meter-replacement costs and reach a $41.59 base rate effective Oct. 1 under one scenario. Foreman Spencer Cumley suggested checking the casing and screen in well No. 1 as a lower-cost interim option instead of immediately digging a new well.

Clerk Tamela Curtis said the council will vote on the water-base rate increase at the Sept. 9 meeting and that Tyler from JEO will present the Preliminary Engineering Report (PER) on Sept. 23 to explain water project priorities (new well, G Street main replacement, radio-read meter rollout). The council discussed that radio-read meter replacement would add approximately $2.67 per account per month and that spreading that cost across years could shorten the payback period.

No final rate change was adopted at the Aug. 26 meeting; the council directed staff to notify customers by note on the next water bill if the increase is approved after the Sept. 9 vote.