City Manager Calls for 15-Percent Water Rate Hike

March 11, 2010

Wichita City Manager Robert Layton prepares for a news conference about water rates.

By Cliff Judy (WICHITA, Kan.)

Wichita City Manager Robert Layton will ask the City Council for a 15-percent increase in water rates after announcing "flawed financial projections" from the city's water department. Layton also cited low usage and capital projects as the reasons for the increase just two days after the city's Water Utilities Director suddenly retired.

If approved, residents will pay an average of $3.50 to $18 more a month depending on their water usage.

Bills for commercial customers utilizing 100,000 gallons a month would increase approximately $52 per month. Industrial customers using 10 million gallons a month would see a monthly increase of approximately $4,900.

Layton announced that since 2006, Wichitans have used 13 percent less water. That added up to $12 million less than the water department's projections coming in for the city.

The city needs that money to pay off debt for capital projects like the Aquifer Storage and Recovery Project. The ASR includes construction along the Little Arkansas River to treat and divert water back into the Equus Beds Aquifer to make sure it doesn't go dry. The project is designed to provide the city's water supply through 2050.

Layton told reporters the city's finance department began questioning whether cash flow could cover debt payments in December of last year. The source of the problem was found in late January.

Layton is also calling for an audit of the ASR.

On Tuesday Wichita Water Utilities Director David Warren suddenly retired, resigning from a post he'd held for more than 20 years.

"I think people can read into that for what it is," says Wichita City Council member Jeff Longwell. "It is what it is, and again, I don't want to get into personnel issues."

Liz Bui, a Wichita resident, says her water bills during the summer when she waters her yard can go as high as $150. She's not looking forward to paying an extra $20 a month for water.

"We're only human and everybody makes mistakes," says Bui, "but the fact I have to pay for somebody else's mistake is a little bit frustrating. There's not much I can do."

Mayor Carl Brewer requested the formation of a panel to serve in a permanent oversight function of the Water Utilities department.

Layton also announced the financial responsibilities of the water department will now move to the city's finance department. The move is designed to provide more oversight for a department Layton said the city had treated "as an independent public utility."

This isn't the only water rate increase Layton expects to request. He told reporters the 15-percent increase would only raise about $8 million of the $12 million the city needs. Layton plans to ask for a separate rate hike by the start of 2011.

Layton announced the city's Public Works Director, Chris Carrier, will serve as the water department's Interim Director until a replacement can be found for Warren.

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