Further raising of water and sewer rates was once again discussed at Monday’s meeting of the Ellsworth City Council.

Interim City Administrator Allen Dinkel reminded the council they adjusted both rates in 2025 — the first time since 2019.

“Naturally, inflation has increased the costs for water and sewer operations over the period,” Dinkel said. “I, however, would argue that rates were never adequate to address all of the needs of both services. Even though there are issues to be addressed for water on both a short-term and long-term basis, I feel it is much more important to continue to aggressively increase sewer rates over the next couple of years.”

Dinkel said the $10 million sewer lagoon project — which the city is committed to — is the leading issue to address water rates.

“As you may remember, the Kansas Department of Health and Environment required the city council to agree to address sewer rates to be adequate to meet the financial requirement to pay for principal and interest costs,” Dinkel said. “With $2 million in loan forgiveness, the city will be required to cover principal repayment and interest for $8 million for a 30-year loan.”

As he first noted during the original discussion regarding approval of the loan agreement, Dinkel once again said that with about 1,000 water meters in the city, the average charge per water meter (which includes commercial and other uses) for sewer services will need to be about $35 per month to cover the costs of serving that $10 million loan.

“Ironically, in checking with other cities, improvements that are needed for sewer treatment are at that same cost per meter for the life of the loan,” Dinkel said. “However, when you understand that sewer rates prior to 2025 were not producing adequate revenue for the operation of the service, the need to increase rates is even bigger.”

Dinkel said his best estimate is that the first loan payment to KDHE will not begin until 2028, and maybe even 2029.

“It is important to address more gradual rate increases over the next couple of years,” he said. “Of course, no one desires to have rates increases, but obligations need to be met. By 2028 or 2029, the rates will probably need to be in the $75 to $90 average cost for residential customers. Again, after each rate increase, this year and in 2027, more analysis will be needed.”

Dinkel said he realizes that patrons will indeed complain when sewer costs become higher than water costs.

“But that is not uncommon anymore,” he said.

Dinkel said his goal is to begin the discussion now, then adopt an ordinance increasing sewer rates at the first meeting in May.

In other business:

• Approval was given to a request by Tim Schulteis, representing a private group seeking to plant a tree and place a bench that is being made and donated by MaiCo Industries in Krizek Park in memory of Beckham Reese Binford, a 2-year-old Ellsworth resident who recently died.

• J.H. Robbins Memorial Library Director Colleen Sippel presented a brief review of the library’s 2025 income and donations, as well as the strategic plan for 2026.

• Authorization was given to Mayor Jessica Kootz to sign the City of Ellsworth’s application requesting grant funds from the Smoky Hills Community Foundation to pay for costs relating to a trapneuter- release program.

It was noted the use of grant funds will not require city tax dollars to be used to address the feral cat issue.

• The council tabled action on a request from the Ellsworth Police Department to purchase either a 2023 Dodge Durango for $38,825 or a 2024 Dodge Durango for $41,325 through the Kansas Highway Patrol Fleet Sales, to replace the department’s 2022 Ford Police Utility Interceptor, which recently experienced a defective transmission. It was noted the cost to repair the transmission, which may or may not actually fix the problem, is estimated at $8,000.

It was also noted that if the EPD is successful in the purchase of the KHP vehicle, consideration will be given to decommission the 2022 Ford Police Utility Interceptor and declare the vehicle as surplus to help offset the cost.

The matter was tabled until a second opinion on the cost to repair the transmission can be attained.

• Approval was given to the proposal presented by Lucas Barta of Copeland Insurance for property and liability insurance coverage though EMC Insurance.

• Dinkel and the council began discussions on the Tax Increment Financing District. Dinkel noted the city established the district in 2011 for improvements in Ellsworth to enhance business development and growth.

“Since that time, the district has been amended for other development,” he said.

Dinkel said basically, property taxes for the new development within the district are funneled into the TIF fund rather than to the general fund.

“This includes all taxing entities, including the city, county, school district and extension district,” he said. “Initially, a general obligation bond was issued for payments of improvements. This bond expires in 2031.

“At the present, the balance of the principal to be paid is $615,000, however, at the present time the city has a balance of $1,558,959.34. A discussion is needed to determine options that are available.”

The next meeting of the Ellsworth City Council will be at 5:30 p.m. April 13 at city hall.

“I, however, would argue that rates were never adequate to address all of the needs of both services.

Even though there are issues to be addressed for water on both a shortterm and long-term basis, I feel it is much more important to continue to aggressively increase sewer rates over the next couple of years.”

Allen Dinkel

Interim Ellsworth City Administrator