Wichita city manager Robert Layton says he will ask for water rate increases of 15 per cent and an independent audit of a major water project, in an effort to cover a financial shortfall in the city's water department.
Layton announced the recommendations at a city hall news conference Tuesday. He said the rate increase would generate $8,000,000 to cover operational and capital expenses for the rest of 2010, and another rate increase is expected early in 2011. The rate increase means the average residential monthly water bill will increase $3.00 for low users, and up to $18.00 for high users. Commercial customers using 100,000 gallons a month could see increases of about $52.00. Industrial customers using 10 million gallons a month will see an increase of approximately $4,900.
Layton says he is also asking for an independent audit of the Aquifer Storage and Recovery (ASR) project, which is using water from the Little Arkansas River to replenish the Equus Beds aquifer as a future drinking water source. The city is going out for bids this week, and Layton says he will also ask about management services. Wichita Water Utilities director David Warren retired this week, and public works director Chris Carrier will take over the water department on an interim basis as a national search begins for a new director.
Layton said there were several factors that contributed to the shortfall. There was a decline in daily water consumption, leading to lower-than-expected revenues. He also listed flawed financial projections, debt associated with sewer main expansion program, and compliance issues.
Mayor Carl Brewer said he is calling for the creation of a blue-ribbon panel that will provide oversight and feedback for the operations of the water department. He says this would be a permanent committee. Brewer said the city council will act promptly, responsibly and effectively to resolve the financial issues facing the department. The issues are expected to be on the city council agenda for their April 6th meeting.
Layton said the financial section of the water department will be moved into the city's finance department to provide better internal oversight. He said it's extremely frustrating to put the city council in a position to make quick decisions with limited options. Layton said the extent of the financial problems became apparent about a month ago.
George Lawson
Posted: March 11, 2010 14:30