Council gives OK to utility waivers

Tuesday, April 21, 2020

McCOOK, Neb. — The McCook City Council approved unanimously a resolution that allows customers to get a temporary waiver from paying city utility bills if they can prove financial hardship due to the COVD-19 pandemic.

City staff is finalizing a waiver form that customers can use, said City Manager Nate Schneider at the regular council meeting Monday night. The council met remotely due to COVID-19 social distancing requirements.

The waiver requires the customer to sign a promissory note or a payment plan, with payments due spread out over a 12-month period. City water, trash and sewer customers have 14 days after April 23 to show proof of financial hardship due to COVID-19, such as a letter from employer showing loss of wages or job, so the account can be marked as “no disconnect,” Schneider said. If no payment is made or the customer does not contact the city, a disconnect notice will be sent.

“It will provide some relief, without breaking the bank,” Schneider said. Waivers will be available through the city’s website or by contacting the city and will be used only until June 30, 2020.

However, Schneider emphasized that payments cannot be forgiven completely as ultimately, rate increases could result from cumulative non-payments. “I can’t stress the importance of making your payment…it’s the best way for us to help out without us jeopardizing our future,” he said.

Water, sewer and trash are enterprise funds and operate on revenue collected. City of McCook Utility Director Jesse Dutcher said Monday night utility payments are essential for the enterprise funds, that no tax dollars are available for those funds and “if the city gets behind, it could require a rate increase if we lose money,” he said.

City water customers have already seen rate increases the past two years. Water rates were increased in 2019 by 6% and sewer, by 3%. PFM, the financial advisors that annually monitors cash flows for the city enterprise funds, cited the decline of water usage as the reason for the water increase. In 2018, the council approved a 3% water rate increase and a 2% sewer rate increase.

Councilman Jerry Calvin cited the hardships small businesses are experiencing and he and Councilman Gene Weedin asked if deferred payments were allowed for businesses as well. Nathaniel Mustion, city attorney, said it would be.

Schneider said there are other options available for citizens, such as a fund specifically set up for COVID-19 hardships at the McCook Community Foundation, as well as the Ministerial Association and Mid-Nebraska Community Action Partnership, that can provide assistance with utilities and rent.

The resolution the council approved authorized city staff to temporarily suspend utility disconnections and to waive utility administrative handling charges and required utility deposits due to the economic hardships caused by the federal, state, and local Covid-19 health emergency.

Councilman Jared Muehlenkamp and Mayor Mike Gonzales thanked city staff for their efforts in helping utility customers.

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