read online gazettehormelbusinesscomp
Login | Register
Fair ~ 42°F  
[McCook Daily Gazette]
McCook, Nebraska ~ Friday, January 9, 2009
Print Email link Respond to editor Read comments (5)

Sewer rates may increase

Thursday, July 17, 2008
There are no increased rates scheduled for water but there may be one in the future for sewer customers, due to the dwindling cash reserve.

Jesse Dutcher, Utility Director, said the financial company the city uses to predict if a rate increase is needed - or not - is currently crunching numbers to see what can be done in the sewer department to boost the ending balance.

Funds from the ending balance are used for emergency equipment replacements and other costs not anticipated, Dutcher said.

The water department, like the sewer, is an enterprise fund and is not supported by property taxes and grants like city departments are but is self-supported by rate users.

The ending balance of the water department is projected next year to be $1.1 million, up from $1.04 million in 2007-08. By comparison, the ending balance of the sewer department for next year is estimated at $253,000, down from $311,000 for 2007-08.

The reserve balance for sewer is slipping due to the department dipping into it to pay for day-today-operations instead of raising rates, Dutcher said.

Total funds available for next year is expected to be $2.6 million, This includes money collected from sewer fees ($1.2 million), interfund transfers ($612,000) and revenue from other sources like public utilities at $15,000 and uses of money and property at $11,000.

Cost of maintenance and operation is projected at $1.5 million.

The largest expense under sewer capital replacement will be $70,000 to clean the digestors, what Dutcher called "the world's worst dirtiest job."

Sludge builds up and must be manually scooped out, then the tanks are pressurized, he said. The high cost is because specialized equipment must be used by hired workers.

The last time it was done was 2000, he said.

Another capital replacement purchase included in the budget are sewer lines for the proposed Army National Guard facility at the airport, for $150,000, but that will be paid for by city sales tax.

Other expenses include:

monitoring system to sample for explosive gas, $3,000

RBC side car aeration blower, that blows air on the rotating discs, $6,600

lift station pump impeller, that is near the end of its life expectancy, $3,400

exterior building flood lights, $3,400

replace overhead doors, $9,000

There is $453,000 uncommitted reserve from sewer collections/reserves.


Comments
Note: The nature of the Internet makes it impractical for our staff to review every comment. If you feel that a comment is offensive, please Login or Create an account first, and then you will be able to flag a comment as objectionable.

Sales tax is being used so that user fees do not need to be raised to cover the costs of improving and expanding the sewer and water lines. the citizens that attended the sales tax meeting overwhelming said that sewer and water costs needed to be offset by the sales tax so that is what the council did. what exactly do you oppose and what do you support? i would welcome a meeting with you. please email me or give me a call.

-- Posted by dennis on Wed, Jul 23, 2008, at 10:40 AM

If the users pay for the service, why is the Army National Guard facility (at the airport)sewer line being paid for by the city sales tax???

Yes, there are lots of activities for people in the city. dennis, I've lived here all my life and seen what has been done. I'm not a stranger to this. Look outside the box.

-- Posted by edbru on Tue, Jul 22, 2008, at 8:29 PM

No surprise that edbru and babycakes were complaining but again the facts do not support their positions. Both the water and the sewer are enterprise funds. That means they pay for themselves with NO tax dollars. Users of both just pay the cost of the service. Same song second verse with new businesses, the citizens overwhelmingly passed a sales tax increase to help attract and retain business. McCook is in competition not only with other Nebraska cities but cities across the nation and world for new businesses. It will take time and a lot more money. Thankfully the city and MEDC landed the Workcamp, CSI, Sitel, Valmont, Holiday Inn Express, the diaries ....and others in the recent past or the entire SW Nebraska area would be hurting even more. I also think the city has done a great job of providing things for kids. A quick review would be the swimming pool, baseball and softball fields, parks, tennis courts, the YMCA, sports camps, educational camps, the library, Head Start programs, basketball courts, (we had a skate park until the kids tore it up), movies, bowling alley, fishing, hunting boating, a new walking/bike trail in the works, Hot Summer Nights, multiple events at Kiplinger, car races, dances, school clubs/organizations/sports, free/reduced breakfasts and lunches at school, golf...the list is nearly endless plus it really is not the business of the taxpayers and the city to raise and entertain your children. Try singing the praises for what we have instead of barking at the wind. You attract more flies with honey than with vinegar.

-- Posted by dennis on Mon, Jul 21, 2008, at 11:17 AM

This falls into the catagory that funds were not used or put into the correct place for repairs. If taxes are needed to be collected to to fund these repairs, then so be it. It comes to mind like the raising of water rates. The citizens were told previously before to conserve on the water and to use conservation practices to save on the water usage. Then after these practices are done, the citizens were hit with the rate that would be increased because of "not enough water was sold" idea. Still there are no organized functions being used.

Look to the future for repairs, not to increase the tax or make more projects that cost the taxpayers more. We can have future projects to better the city, but lets get real, don't get the cart before the horse.

-- Posted by edbru on Sun, Jul 20, 2008, at 8:01 PM

Thats right raise the rates. Anything to take our money. You take and we get nothing. How about the city put some new businesses in McCook and how about they put something for the kids to do. If they are going to increase water and sewer and gas prices they businesses should be paying higher wages we do have children to raise. THINK ABOUT IT

-- Posted by babycakes1258 on Fri, Jul 18, 2008, at 5:01 PM


Respond to this story

Posting a comment requires free registration. If you already have an account on this site, enter your username and password below. Otherwise, click here to register.

Username:

Password:  (Forgot your password?)

Your comments:
Please be respectful of others and try to stay on topic.

Mailing list
Enter your email address to join our daily headline mailing list:
McCook Daily Gazette

  McCook Stories QuarterGazette Photo