City water, sewer rates may climb 2%

McCOOK, Neb. — City water rates have been suggested to increase by three percent and sewer rates by two percent, by a financial management company.

The McCook City Council will hear a presentation of the cash flow analysis of the water and sewer enterprise funds by PFM Financial Advisors, at the regular meeting Monday, 6:30 p.m. at city council chambers at the city Municipal Building.

The city uses a model provided by PFM that shows how the water and sewer funds react to changes in sales, expenses and rates in the short and long term. The model also shows how rates and cash reserves are expected to react to the future, based on actions taken or not taken. The current model shows that a three percent increase in water rates and a two percent increase in sewer rates will protect against current inflation and replenish some of the funds being used for necessary capital projects.

The water and sewer funds are supported by user fees and not by the general fund. The increases will garner an additional $80,000 for water utility revenue and $61,000 for the sewer utility revenue, according to the staff report in the city council agenda. Any rate increases, that would take effect in October, would have to be approved by the City Council.

On the regular agenda, after having a public hearing, the council will be asked to approve an ordinance suspending the three-reading rule that sets assessments (costs) for extending a sewer line. An existing sewer line is being extended to six subdivision lots in an alley between Seminole Drive and Pawnee Drive, owned by Jay T. and Susan K Hancock. Total cost of the assessments are $44,913,80, with each lot assessed at $7,703.62.

Also on the regular agenda, the council will be asked to approve:

— under suspension of the three-reading rule, an ordinance adopting an economic development program pursuant to the provisions of the Local Option Municipal Development Act, with minor changes.

Staff recommends approval on the first rather than three readings, so that the plan is in place Oct. 1 when then next extension of city sales tax begins.

— an ordinance providing for the adoption of the 2018/2019 Fiscal Year Employee Classification Pay Plan.

— an ordinance to increase the city trash collection fees, on its third and final reading, from $22.75 to $23.25 per month for residential users and from $63 to $64 per ton for commercial users. The last rate increase was in October 2017, when the fee increased for residential users from $22.50 to $22.75 per month and for commercial users, $62 to $63 per ton per month.

After the regular meeting, the council will meet as a community development agency and be asked to approve a resolution that cancels a tax increment revenue bond and authorizes the issuance of a new TIF bond, for Next Generation, Inc. A TIF revenue bond was first issued for Next Generation Inc. in February 2017 for $720,000 and the new bond will include that amount, as well as the new request of $1,024,000 associated with its expansion project, for the total amount of bond set at $1,744,000. Next Generation, located at the McCook Business Park, requested the new TIF revenue bond to double its current size and capacity.

Consent agenda items include:

— Offer a contract to BSB Construction, Inc., with a bid of $164,427.00, as the lowest responsible bidder for Barnett Park Lift Station Renovations and authorize the Mayor to execute the necessary paperwork to award the contract.

— Ratify the Mayor's appointments to the Economic Development Plan Citizen's Advisory Review Committee - reappoint Troy Bruntz - term expires July 2021, appoint Sarah Renner to replace Jerda Garey-Vickers - term expires July 2021, and appoint Jeannette Peters to replace Bill Burton - term expires July 2020; the Board of Health - reappoint Nate Schneider, Ike Brown, Mike Gonzales, Dr. Richard Klug, and Mary Beth Eisenmenger - terms expire June 2019; the Library Advisory Board - reappoint Pam Wolford - term expires June 2022; the Parks Advisory Board - reappoint Elizabeth Yilk and Harry Sughroue - terms expire May 2021; the Planning Commission - reappoint Chad Lyons and Dale Dueland - term expire September 2021, appoint Camy Bradley to replace Terri Shipshock - term expires September 2019, and appoint Katie Graham to replace Camy Bradley as alternate - term expires September 2021; and to the Tree Advisory Board - reappoint Dan Dueland and Cloyd Clark - terms expire April 2023.

— Approve an application from Great Plains Communications to occupy city right of way for the purpose of installing underground fiber optic cable to provide service to 1007 Airport Road.

— Receive and file the Financial Report for the quarter ending August 31, 2018.