‘A gallon of milk and a loaf of bread’: Topeka City Council questions proposed utility rate hike

Topeka City Council members responded with a critical eye late Tuesday after city manager Stephen Wade described a proposal officials are set to consider next week that would significantly raise utility rates charged by the city.

Councilwoman Christina Valdivia-Alcala made reference to how Wade had said the proposal's passage would raise the average Topeka family's utility bill by about $9 a month, from roughly $92.66 a month.

She said $9 buys "a gallon of milk and a loaf of bread," adding that the increase's approval would greatly affect people on fixed incomes who are "barely making it from month to month."

"I don't think people understand how dire the situation is for people when they're looking at this kind of increase," Valdivia-Alcala said.

Here's how much city utility rates are proposed to increase

Valdivia-Alcala was among council members who said they'll need more information before they'll be ready to consider a proposed ordinance Wade is sponsoring that would significantly raise the city's utility rates.

Nobody likes talking about utility rate increases, Wade observed Tuesday evening as he prepared to share the proposal's details.

The measure would arrange for Topeka's city government to increase rates:

• In 2024 by 11.8% for water, 8% for wastewater, or sewer, and 7.5% for stormwater utility. The amount assessed for stormwater runoff depends on a property’s amount of impervious surface areas that don’t allow rainfall to soak into the ground, such as driveways, sidewalks and rooftops.

• In 2025 by 11.8% for water, 8% for wastewater and 7% for stormwater runoff.

• And in 2026 by 11.5% for water, 8.25% for wastewater and $7% for stormwater runoff.

The proposal's passage would also increase participation in the city's program that provides utility assistance for residents in need, Wade said.

More:Utilities department draws attention to its history

'Ticking time bombs'

An ordinance the mayor and council approved in December 2019 established city water, stormwater and wastewater rates through the end of 2023, more than a year away.

The mayor and council are talking about rates for 2024 through 2026 a year in advance because several businesses set their budgets at the middle of the year, Wade said.

"We're giving these businesses opportunities to plan in advance," he said.

By approving city utilities rates now for 2024 through 2026, the city would also be giving its citizens a year to plan for the increase, Wade added.

He stressed that the city has about $70 million worth of water lines that are in current need of repair and replacement.

Councilman Brett Kell, the self-described son of a master plumber, agreed Tuesday evening that effectively maintaining and replacing those water lines is crucial for the city.

"They're ticking time bombs sitting underground," he said.

More:City says Topeka water is experiencing taste, odor, color issues but is safe to drink

'We actually did look favorable compared to others'

Wade told the mayor and council the proposed hike is necessary due to existing debt service, regulatory requirements, deferred maintenance and inflation.

Councilman Neil Dobler responded by asking how much money would go toward each of those, particularly inflation.

"Right now it's just tough to forecast three years down the road," he suggested.

Dobler added that when the mayor and council last approved utility rate increases in December 2019, then-city utilities director Bob Sample promised to take a look at the efficiency of his department.

Dobler asked Wade if he knew "where that went."

Wade replied that some comparison was done between the utility operations in Topeka and other communities.

He said he didn't know that the survey was dramatically in depth, "but we actually did look favorable compared to others."

Last meeting of the year

Valdivia-Alcala said she didn't think most Topekans were aware of what the mayor and council were considering doing.

She said the mayor and council shouldn't be considering a proposal to significantly raise utility rates at its last meeting of the year, during a time "when people are stressed and tuned out about what's happening on council."

Councilwoman Karen Hiller asked how much federal infrastructure money could be used to offset the proposed increase.

"We are actively applying for grants," Wade replied. "At this point in time we have received none."

Councilwoman Hannah Naeger recalled how the mayor and council earlier this year had looked into the possibility of applying federal COVID-19 relief funds to help make the city's utilities rates as low as possible.

Wade, who at that time was the city's administrative and financial services director, said the city explored that possibility and concluded its impact upon utility rates would be "negligible."

Wade said he consequently recommended the city use the federal funds to instead help avoid future instances in which it would borrow money by issuing general obligation bonds.

The mayor and council are tentatively set to consider and act upon the rate increase proposal when they meet at 6 p.m. Tuesday, Dec. 20, in their chambers at 214 S.E. 8th.

Contact Tim Hrenchir at threnchir@gannett.com or 785-213-5934.

This article originally appeared on Topeka Capital-Journal: Topeka City Council discusses proposal to markedly raise utility rates