If Wichita KA City Council members don't raise water rates now, they will likely have to do it later, water officials said Tuesday. That's because the utility's bond rating is on the brink of a downgrade that, based on city estimates, could lead to $36 million in increased interest rates. The only alternative would be to delay or shut down the aquifer recharge project that local officials have said for years is key to the city's future.
Council members greeted this news with skepticism Tuesday, noting that interest rates could fluctuate anyway. But they showed little interest in four other options, including a property tax increase. Instead, they poised themselves to vote on a $2 base rate increase for all water customers and a 5 percent usage increase every year through 2013. The city is stuck in this bind because rainy weather has led to less water usage, which means the utility has less cash to pay off debt on major projects. Finance officials plan to study how decreased water use might affect the utility's budget. The council will examine that next week and likely vote on an increase in two weeks. If approved, the rate increases could start in August. The water billing software rate tables will be adjusted accordingly.
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