In April 2023, the Newton City Commission adopted adjustments to water and sewer rates after more than seven years of no rate increases and dramatically increasing costs for City operations. In recent years, City staff have cut the utility budgets, postponed purchases, increased efficiencies, and drawn down reserve funds to meet the budget.

After a series of work sessions, the City Commission on March 14 directed staff to bring back ordinances that eliminate the 38% Sewer Plant Upgrade Fee and stop paying off the plant loan early, keep the property-tax relief transfers to the General Fund intact, and gradually increase rates over the next few years to keep the utilities solvent.

The new rates will take effect in January 2024. The ordinances provide for six years of gradual increases, with a review at least every three years to determine if adjustments are needed. The utilities will still spend down reserves for the next few years.

The total utility bill (water/sewer/trash) for a low user of 300 cubic feet of water is $96.21 today. In 2024, their bill will be $96.62. For a 600 cubic feet user, the total bill today is $151.32. In 2024, their bill will be $151.97.

Water Rates

Sewer Rates

Commission Rate Discussions

• Nov. 8, 2022 work session discussion video
• Nov. 8, 2022 PowerPoint presentation
• Nov. 22, 2022 meeting discussion video
• Nov. 22, 2022 meeting presentation
• Feb. 14, 2023 meeting video
• Feb. 14, 2023 presentation
• March 14, 2023 meeting video
• March 14, 2023 presentation

2013: In December, the City Commission approved a water rate increase for 2014 & 2015

2014: Rates increased by $2.78/mo. to $16.53/mo. for the first 200 cubic feet. 

2015: Water rate increased by $1.12/mo. as per the 2013 ordinance (last time water rates increased)

2013: Plant Upgrade Fee created to pay for significant upgrades to the Wastewater Treatment Plant (20-year loan). The fee is 38 percent of a customer’s sewer charge. Commission at the time said that when construction was complete and actual costs known, they would consider reducing the fee.

2013: City Commission approved a regular sewer rate increase for 2015, 2016, 2017, & 2018 of $1.59/mo

2015: In January, a rate increase was implemented of $1.59/mo to the regular rate for each customer

2016:  In January, a rate increase was implemented of another $1.59/mo to the regular rate for each customer.

2016: In September, the City Commission voted to keep the Plant Upgrade Fee (38%) in place in order to pay off the plant loan 10-11 years early. However, they asked that the planned increases to the regular rate be taken from the plant upgrade revenues rather than increasing the regular rates, effectively freezing customers' rates.

2017: No increase to regular rate, $1.59/mo/customer was transferred from the plant upgrade fee revenues to offset the regular rate for 2017 and each year forward as Commission directed in 2016.

2018: No increase to regular rate, an additional $1.59/mo/customer was transferred from the plant upgrade fee revenues to offset the regular rate increase for 2018 and each year forward as Commission directed in 2016.

1. Regular Rates — Pays for operating budget expenses & debt service payments for all projects bonded or for state loans payments, except for the Wastewater Treatment Plant Upgrade Project.

2. Plant Upgrade Fee — Pays for the annual debt service payments & the extra principal payment on the state project loan. It's a 20-year loan that began payments in 2016. Since the City Commission decided to try to pay the loan off early, the City has been making extra principal payments for the past six years. 

As of November 2022, the City has made $5.6 million in extra principal payments on the loan and has saved $770,000 in interest. If the City were to keep the Plant Upgrade Fee (38% of sewer charge) and pay the loan off in 2026, it would save $2.3 million in interest. 

• Pandemic — Spring of 2020, COVID-19 begins affecting USA and Newton, Kansas. 
• Texas Freeze — Natural disaster declared in February 2021. Two of three largest PVC pipe manufacturers in the nation were affected, causing material shortages & price increases.
• Hurricanes — Shut down supply chains & caused increased material prices.
• New Federal Regulations — Updates to lead & copper rule, CDL regulations, stormwater quality permit

Has led to:

• Staffing Issues — Turn-over, more staff needed, more training needed
• Material Price Increases — Pipe, all pipeline appurtenances, meters, concrete/asphalt, chemicals, fuel, vehicles, etc.

• Sewer Lift Station Enzymes 28%
• Saw Motors 14%
• Televising Vehicle 21%
• Vactor Truck 39%
• Air Sweeper 25%
• High Loader 55%
• Insurance (Property & Liability) 13%
• Stormwater Maintenance 150%

• Meter Pits 53%
• Meter Setters 48%
• Meters 21-26%
• Pipe (various) 67-80%
• Meter Radios 16%
• Repair Clamps 81%
• Fuel 33%
• Caustic Soda 53%
• Chlorine 64%
• Fluoride 8%
• Insurance (Property & Liability) 13%

• Refinanced bonds to save interest costs for both Sewer & Water
• Moved state required water analysis at WWTP to private lab to save on equipment purchases & staff time (Kept operational plant process lab analysis in-house)
• Ongoing analysis of WWTP process & how to operate the least amount of powered equipment & polymer additive to still achieve state required treatment results
• Working on pilot project for using sludge to create Class A biosolids to use as cover(top layer of dirt) on construction projects
• Remotely control treatment plants on weekends to save OT costs
• Buried electrical lines from wells to Mission Plant to improve reliability & limit outages/damages from storms

• Paid Cash for the Following Sewer Projects to Avoid Debt & Interest Costs: 

  • 2016 Sewer Rehab
  • NMC Sewer Extension
  • 4th & Boyd Culvert Repair
  • Grandview Drainage
  • Centennial Park Sewer Lift Station
  • Centennial Park Drainage Channel
  • Slate Creek Channel Rehab
  • Suderman Drainage
  • Portion of 8th & Sand Creek Sewer Upsize
  • Windows 10 Upgrade for Utility Computers
  • SE 14th Street Storm Sewer
  • Girl Scout Little House Sewer
  • Upgrade 2 of 4 influent pumps at WWTP w/VFD’s
  • Total Cost of These Projects: $1,723,314

• Paid Cash for the Following Water Projects to Avoid Debt & Interest Costs: 

  • 5th & Elm Large Water Main Break
  • Equipment Purchases
  • Windows 10 Upgrades for Utility Computers
  • Ground Level Storage Tank, W. 1st
  • Wheatridge Waterline
  • Security Cameras for Facilities
  • Switch gear for generator transfer switch upgrade & VFD Additions on high service pumps at Mission
  • Total Cost of These Projects: $560,731

The City hired utility rate expert Jerry McKenzie with MGT of America to review Newton’s rates and forecast the future needs of the utilities. McKenzie reviewed past audited costs and revenue patterns and analyzed expenditures at a very detailed level. Several rate adjustment options were vetted and considered.