Raymore finance director outlines modest water, sewer rate changes and breakeven concerns

Lisa Williams, Raymore’s finance director, laid out the city’s annual water and sewer cost-of-service model at the Aug. 3 work session and said the city expects a small increase in the water rate. "Our rate model indicates that our water rate will increase less than 1% from $6.88 per 1,000 gallons to $6.94 per 1,000 gallons," Williams said.

Williams told the council the model uses a three-year average consumption (75,950 gallons per customer annually) and anticipates about 9,436 water customers and 9,199 sewer customers in fiscal year 2027. She said wholesale charges from Kansas City and Little Blue Valley Sewer District are primary cost drivers: "Little Blue Valley Sewer District has indicated a 7% increase that will begin in October," Williams said, and that timing of such wholesale changes can make the city appear to be losing ground relative to its breakeven rate.

Council members pressed for clarification after a councilor noticed an apparent drop in the unit breakeven rate on the printed sheet. Williams explained the model accounts for timing differences in when wholesale increases take effect and that the breakeven number reflects projected revenues and expenses across the fiscal year. Under the presented calculations, the volume-based sewer breakeven was shown as $9.76 per 1,000 gallons with winter-averaging producing a different calculated rate.

Williams estimated the combined change in water and sewer rates would increase an average household bill (for a customer using ~5,300 gallons) by about $2.09 per month. She also noted that state rules require a public hearing for sewer-rate changes and that the city advertises fee-schedule changes and provides 30 days’ notice when required.