Item Coversheet

City of Topeka
Council Action Form
Council Chambers
214 SE 8th Street
Topeka, Kansas 66603
www.topeka.org
April 11, 2023
DATE:April 11, 2023
CONTACT PERSON:Sylvia Davis, Director of UtilitiesDOCUMENT #:
SECOND PARTY/SUBJECT:Proposed Utility RatePROJECT #:
CATEGORY/SUBCATEGORY 006 Communication / 005 Other
CIP PROJECT:No
ACTION OF COUNCIL:Discussions: 12-13-22; 12-20-22; 03-07-23; 03-14-23; 03-21-23; 04-04-23JOURNAL #:
PAGE #:

DOCUMENT DESCRIPTION:

 

ORDINANCE introduced by City Manager Stephen Wade concerning utility rates, amending Sections 13.05.020 through  13.05.090 of the Topeka Municipal Code and repealing original sections. 

 

Voting Requirement: Action requires six (6) votes of the Governing Body.

 

(Approval would set utility rate fees for infrastructure maintenance and investment.)

 

VOTING REQUIREMENTS:

Action requires six (6) votes of the Governing Body.

POLICY ISSUE:

K.S.A. 12-860 requires the governing body to set utility rates.

STAFF RECOMMENDATION:

Staff is seeking input from the public and Governing Body members regarding potential utility rate changes for infrastructure maintenance and investment.

BACKGROUND:

The City anticipates that the combined costs of proposed water, wastewater and stormwater systems’ capital improvements, anticipated increases in operation and maintenance expenses, and other financial obligations over the next four years will exceed the utilities’ current financial capabilities under existing rates.  To provide an ongoing plan to meet the anticipated financial obligations of the utilities on a sound and equitable customer basis, the City authorized a comprehensive study of revenue requirements, costs of service, and rates for each of the three utilities in 2019.

 

Staff continues to maintain the rate models resulting from the 2019 study. Inputs are updated annually and reviewed for accuracy and impact. Water and stormwater rates requested in 2019 were reduced by 1.5% each before their passage for three (3) years, instead of the requested five (5), with the intent to review and assess the continued necessity. Subsequent review of the wastewater model revealed significant miscalculations proving the approved rates to be woefully inadequate to maintain system requirements.  Inflationary pressure continues to push costs up and system capital needs have not been relieved in any substantial way.

 

In December 2022 and January 2023, the City of Topeka Governing Body had extensive discussion on utility rates. The City also held two public input meetings in January 2023 to discuss utility rates. In an effort to continue those discussions, a series of three public meetings have been scheduled on March 1, March 8 and March 15, 2023, along with continued discussion by the Governing Body over the next several weeks. 

 

The three public input meetings will be streamed live on Channel 4, on Facebook at https://www.facebook.com/cityoftopeka/ and the city's online livestream at https://www.topeka.org/communications/live-stream/Send questions in advance of the meeting or during the "live" meeting to citymanager@topeka.org. Written public comment may submitted at the meeting or personally to the City Clerk's Office located at 215 SE 7th Street, Room 166, Topeka, Kansas, 66603 or via email to citymanager@topeka.org.

 

After careful consideration of concerns presented through public comment and input from the Governing Body, Staff will present a modified rate proposal for consideration by the Governing Body. 

BUDGETARY IMPACT:
Budgetary impact to be determined. 
SOURCE OF FUNDING:

User fees collected for services provided.

ATTACHMENTS:
Description
Proposed Ordinance (March 21, 2023 GB Meeting)
Assistance Programs Presentation (March 14, 2023 GB Meeting)
Proposed Rate Presentation (March 14, 2023 GB Meeting)
Community Resources Council (CRC) Franchise Fee Service Summary (March 14, 2023 GB Meeting)
Rebate Trend Analysis (March 14, 2023 GB Meeting)
Map of Water-Share and Rate Refund Approved Applications (March 14, 2023 GB Meeting)
Proposed Rate Schedules Presentation (March 7, 2023 GB Meeting)
City Utility Rate Meeting Flyer (March 7, 2023 GB Meeting)