John Krajewski of Smithfield with JK Energy Consulting talks to Grand Island City Council Tuesday, May 21, about electric, water, and wastewater rates, (Carol Bryant, Central Nebraska Today)
GRAND ISLAND — Grand Island’s City Council heard a presentation about the city’s electric, water, and wastewater rates Tuesday night, May 21, from a consultant.
John Krajewski of Smithfield with JK Energy Consulting gave the presentation, which included a PowerPoint presentation.
He said that the Grand Island Utilities Department last completed an electric cost of service and rate design study in 2021.
Rate comparisons were made with Lincoln Electric System, Nebraska Public Power District, Omaha Public Power District, Southern Public Power District, and the City of Hastings.
In a memo dated May 21, Ryan Schmitz, Utilities Director for the city, and Keith Kurz, Public Works Director, noted that on Nov. 8, 2022, the city approved a proposal by JK Energy Consulting for a study of electric water, and sanitary sewer rates at a cost of $119,500. The May 21 presentation was the culmination of the study.
“Based on the study, staff will bring proposed action items on the rates for each utility to the Council at a future date,” the memo said.
Concerning electric rates, studies are recommended to be conducted every three to five years. The last study was completed in 2021.
“The last time the Utility implemented a rate increase was fiscal year 2007,” the memo said. “Between 2007 and 2020, the City enjoyed an unusually stable period of electric costs due to a number of factors including low inflation rates, stable commodity prices, and reliable train schedules. But over the last few years, that stable environment has changed.”
Concerning water rates, the last increase was in FY 2017. “At this time, it is necessary to request a rate increase based on a number of factors,” the memo said.
Concerning wastewater rates, “The Wastewater Division of the Public Works Department is an enterprise fund with no property tax dollars used to support the division. The entire budget comes from wastewater customers through sanitary sewer bills,” the memo said. “The current sanitary sewer rates are based on (a resolution) which was approved by City Council on December 17, 2019.”
For electric rates, Krajewski suggested a 6 percent increase on Oct. 1; a 3 percent increase on Oct. 1, 2025; and future increases of 3 percent annually likely necessary through FY 2029. Without a rate change, cash reserves would be completed exhausted by FY 2031.
For water rates, he noted that the cash balance will become a deficit by FY 2029 without rate changes. The rate changes he suggested are: 7.4 percent, FY 2025; 7 percent, FY 2026; 5 percent, FY 2027, and 3 percent for FY 2028, FY 2029, and FY 2030.
For wastewater rates, he suggested a 6 percent increase in FY 2025 through FY 2028; a 3 percent increase in FY 2029 through FY 2031; and a 2 percent increase in FY 2032 through FY 2033.
In other business, the City Council her a request from Hooker Brothers Sand and Gravel for a renewal of a conditional use permit to operate a sand and gravel business at 3860 S. Locust St. In a memo to City Council, Regional Planning Director Chad Nabity said that the site was approved for a sand and gravel operation in May of 1994 and 2004, each for a 10-year period.
“Mining and pumping of the sand and gravel pit at this location has ceased, but the operation of storage of product and equipment and a maintenance facility has remained,” Nabity wrote. “This is a renewal of the current permit for another 10-year period.”
Nabity wrote to “approve the request if all conditions are met as presented by City Administration, and if the City Council finds that the proposed use and application promotes the health, safety and general welfare of the community, protects property against blight and depreciation, and is generally harmonious with the surrounding neighborhood.” The City Council approved the conditional use permit by a 9-0 vote.
Next, the City Council considered approving acquisition of permanent drainage easement for Tri-Street Drainage Improvements. In a memo from Keith Kurz, Public Works Director, he noted that the project will address drainage concerns on Tri Street and U.S. Highway 34. The City Council voted 9-0 to approve the easement.