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Krebs Utilities Authority reviews August finances and considers moving up 5% water-rate increase
Summary
At its Sept. 17 meeting, the Krebs Utilities Authority reviewed August finances and staff recommended accelerating a planned 5% water-rate increase because rising chemical and operating costs are squeezing margins; the board agreed to place the matter on the October agenda for further action.
The Krebs Utilities Authority reviewed its financials for the two months ending Aug. 31 and heard staff urge the board to consider enacting a planned 5% water-rate increase sooner than the customary January start.
Mike Kern, who presented the financial statements, said total revenues were $231,963.82 and operating expenses were $231,135.09, and that the utility transferred $19,000 to the general fund in January to cover a shortfall. “We need to consider it,” Kern said, noting ongoing increases in the cost of chemicals and other operating expenses.
Kern recommended moving the typical January rate adjustment up because rising costs are eroding the utility’s margin; he said a 5% increase would be roughly $0.17 per customer per day as he described it. Chairman Tommy Ray Walker and other board members expressed concern about imposing higher bills right before the holidays.
City Clerk Cindy J. Cooper explained the board could notify customers by printing notice on the October water bill. Dan Heathcock asked that the item be put on the KUA October agenda so the board could act in time; Cooper confirmed the KUA meeting on Oct. 15 would permit inclusion of the notice on bills that go out later in the month.
The board took no formal vote on a rate change at the Sept. 17 meeting; members directed staff to place the rate-timing item on the October agenda for further consideration.
