The New Franklin City Council gave unanimous approval to a two-stage water rate increase during its regular meeting on Thursday, February 18. The price will go up by a total of 80 cents per 1,000 gallons after two 40-cent increases are implemented.

The meeting, originally scheduled for February, was postponed twice because of the harsh winter weather.

The first increase will increase rates to $20.40 for the first 1,000 gallons, and $7.89 for each additional 1,000 used. It will occur in March and be reflected on bills sent to customers in April. 

The second rate increase, also for 40 cents per 1,000 gallons, will go into effect in July. The reason for implementing the increase in two parts is so that customers are not hit with higher bills all at once. Aldermen expect the higher rates to adequately cover the city’s expenses.

The rate hikes are in response to increases charged to the city by the Howard County Regional Water District last year. The district raised the price of water by 50 cents per 1,000 gallons two times during 2020.

“Regional has raised the water (rate) two times, and we haven’t,” said Ward 2 Alderman Robbey Harvey. “So basically we’re running behind a little bit.”

Harvey also works for the water district. He said the HCRWD expects to keep rates steady for the near future. He suggested the city make small single-percent increases every year.

“We’re (the city) is not making money, but we’re keeping our head above water,” Harvey said. 

The rate hike should not come as a shock to New Franklin residents. Aldermen have discussed the matter at least twice in the past six months. It was revealed in September of last year that the city is in arrears of nearly $40,000 to the water district because it hasn’t used as much water as estimated and contracted. It is unlikely the city will have to pay back that money. A new take-or-pay contract between the city and the water district is reportedly in the works.

 In November, the board was presented with a rate study by Liz Grove of the Missouri Regional Water Association, who suggested increases to both water and sewer rates.

The City of Fayette was in an identical situation with regard to the water district, only on a slightly larger scale. The city owed the HCRWD approximately $100,000. It now has a new contract based on more realistic water usage estimates. In October, Fayette raised its rates by $1.75 per 1,000 gallons. The new rate now stands at $9.23 per 1,000 gallons of water. The base rate for in-town customers remains at $25. However, the base rate for customers living outside the city limits increased by $5 from $27.50 to $32.50. The usage rate for those customers now stands at $10.01 per 1,000 gallons.

The next regular meeting of the New Franklin City Council will be Monday, March 8, at 7 p.m. Meetings are open and the public is invited.