KCK residents ‘getting pinched’ by exorbitant utilities costs. Candidates vow to help

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A majority of candidates running for seats on the Board of Public Utilities in Kansas City, Kansas, have vowed to work to remove a fee from residents’ bills that, if left unpaid, could leave them without water or electricity.

Those pledges come ahead of the Nov. 7 election, when voters will cast ballots for three of the six seats on the publicly owned utility, known as the BPU, which provides electricity and water across Wyandotte County.

The issue is likely to be top of mind for voters after the board voted 4-2 this summer to increase water and electric rates. Residents rallied against the increases, with some saying it could put their neighbors out on the streets.

During a forum hosted last month by The Beacon, a digital news outlet, and Churches United for Justice, a coalition of congregations, BPU candidates pledged to work with the Unified Government commissioners, who sit on the county’s governing body, to remove the PILOT fee from utility bills. The UG fee was added to BPU bills more than a decade ago.

The PILOT fee, which stands for payment in lieu of taxes, helps the Unified Government manage revenue losses from property taxes that are not collected from the BPU, since the municipal utility is tax exempt. The money is used to help fund city operations.

“I know people have had their utilities cut off for not being able to pay their PILOT bill, in addition to their utilities bill,” said Pastor Stevie Wakes Sr., who is running against Alex Sanchez for BPU District 1 in KCK’s northeast region.

Sanchez did not attend the forum and could not be reached by phone for comment.

Speaking at last month’s Unified Government meeting, during which numerous residents called for PILOT relief, Sanchez said people get bills even if they don’t use any service.

“If you break down the cost for the actual service itself, it’s very low. The majority of that bill are fees and taxes,” Sanchez said, adding later: “We are getting pinched at every corner.”

At the forum, Jeff Bryant, who has served as BPU’s District 3 member since 2011, said many cities use PILOT fees to bring in additional revenue. But he said the tax the UG adds to each BPU bill is higher than comparable utility company fees across the U.S.

“In most cities, the amount is around 5%,” Bryant said, citing data that is confirmed by the American Public Power Association. “But we have been stuck at 12% for far too long.”

Some KCK residents report that their BPU bills each month cost hundreds of dollars. In each recent year, the PILOT has collectively brought more than $30 million in for the UG, according to the BPU’s annual report.

Bryant called it unfortunate that in the past few years, UG commissioners have added a “string of fees” to BPU bills, which give people the perception that the BPU is solely responsible for rising costs.

Challenging Bryant in the race is Brett Parker, a Democrat who served in the Kansas House from 2017 to 2021. He said he would also advocate for removing the PILOT fee and lobby the Legislature in Topeka for ratepayers.

“There is also another issue here, which is: How big of a burden are our lowest income folks carrying when it comes to paying rates?” Parker said, noting that a neighboring utility has a rate structure where people who use the least water pay the lowest rates. “That would be a tremendous help for residents in our community.”

Months ago, some anguished residents, including from low-income households, begged BPU members to not increase rates. They said they have had to decide between paying their utility bills and buying food.

The BPU voted in July to increase electric rates for its tens of thousands of customers by 2.5% this year and another 2.5% next year. Water rates increased by 6%. It was the first water increase since 2013 and the first energy rate increase since 2018.

Bryant voted yes for the increases, saying that it would be unacceptable if BPU did not maintain its financial responsibilities.

BPU member Rose Mulvany Henry, who has served in the At‐Large Position 3 since 2019, voted no. At the Beacon forum last month, she said residents are “hurting,” something she sees at “every single board meeting.”

Mulvany Henry noted that she sat on a PILOT reduction task force that was put together by CEO and Mayor Tyrone Garner and led by District 1 Commissioner Melissa Bynum. The UG is now working to provide PILOT relief for people ages 65 or older who have an income of $37,750 or less, or are disabled. Commissioners will vote on moving forward with that program at a future meeting.

One way or another, Mulvany Henry agreed, the UG’s charges need to get off BPU bills. It “doesn’t make sense,” she said, to cut off service to someone who can’t pay their PILOT fee.

CeCe Harlin, a community advocate who is running against Mulvany Henry, said there should be another remedy in place instead of turning off access. There also needs to be representation on the BPU for people who have struggled to pay their bills, she said.

“If you have an issue with your bill, I will go with you to BPU or to the meetings and speak for you,” Harlin said, also noting that some BPU employees have received large salary increases.

Last year, The Star reported, the BPU voted to increase General Manager Bill Johnson’s salary. It will rise by nearly $100,000 after five years on the job, to $366,687 in 2024.

‘Burdensome’ PILOT fee

Frustrations over the PILOT fee was front of mind for residents who spoke at the UG meeting Sept. 28.

One resident, Fannie Hill, described the increasing fees as “skyrocketing.” Another, Roxie Armstrong, said some people may leave the county because they can no longer afford to live there.

That night, Garner issued a veto that he said would have provided relief from tax and fee increases, but the move was overridden by a majority of the rest of the governing body.

In a Facebook post the next morning, Garner said the commissioners who voted to override his veto “ignored the pleas of countless residents” demanding relief.

Commissioners Tom Burroughs, At-Large District 2, and Chuck Stites, District 7, were the only two to vote in the mayor’s favor.

Before the vote, Commissioner Angela Markley, District 6, noted that the UG had to pass a budget by the next day. Commissioner Andrew Davis, District 8, said constituents tell him they want tax relief — and improved services that are not in the budget.

“This is not an easy decision,” he said.