Kearney proposes water and sewer rate increase to cover rising costs and capital needs

Sheila, the city administrator, told aldermen the proposed budget includes a water and sewer rate increase “to address rising costs associated with making sure that we are able to continue delivering safe and reliable water and wastewater treatment.” She presented per‑thousand‑gallon adjustments: an increase of $0.28 for the first 1,000 gallons of water and $1.25 for the first 1,000 gallons of sewer, with tiered increments for additional usage. She said the goal is to align operating revenues and expenditures for the utilities and to fund necessary capital replacements and regulatory compliance work.

The water program's capital outlay in the proposal includes nearly $700,000 in projects: filter rehabilitation, roof replacement at the water treatment plant, well casing maintenance, backup power generation, and smaller equipment replacements. Sheila noted the city completed an initial compliance milestone under the lead and copper rule this year and plans a 20‑year integrated management plan supported by an $80,000 DNR grant to guide long‑term infrastructure decisions and utility rate studies. Staff emphasized the city’s current residential rates remain comparatively low in the region even after the proposed increase.