Colby council reviews water rates, approves infrastructure projects

The Colby City Council kept last week’s meeting short as they reviewed possible future water rate increases and approved airport and water storage projects during its July 21 meeting.

A financial model presented by Waterworth showed the city’s water fund could exhaust its available cash by 2032 if rates remain unchanged while expenses increase.

The council took no action on water rates. City officials recommended revisiting the issue in early 2027 after receiving a full year of revenue and usage data under the tiered rate system adopted in February.

Waterworth presented two rate options. The first would increase rates 12% in 2027, followed by annual increases of 3.5%. For a residential customer using 7,000 gallons per month, the initial increase would add about $3.40 to the monthly bill.

The second option would increase rates 5% annually from 2027 through 2030, followed by a 3.5% increase in 2031. The same residential bill would increase by about $1.42 in 2027 and between $1.49 and $1.64 annually through 2030.

The model assumes 3% annual inflation in operating and capital costs and approximately $600,000 per year for future capital improvements. The city’s reserve target is six months of operating expenses.

Officials said Colby’s water rates remain lower than those of surrounding communities. They also said more information is needed about water use by large customers, including the hotels and hospital.

The council approved a $477,322 proposal from Great Plains Structures to repair the city’s storm-damaged water lift tank near exit 54 on Willow Ave.

The contractor will dismantle the tank, replace its upper 10 rings and inspect the remaining panels. Kevin Pucket, Colby’s Director of the water department informed the council that the tank serves as a backup when the main water tower is unavailable, rather than as a primary source of additional pressure.

The damage has been submitted as an insurance claim. City officials said approximately 70% of the repair cost has been received, with another payment expected after the project is completed. A construction schedule has not been established.

The council also gave final approval to a $441,000 Kansas Department of Transportation Airport Improvement Program grant for a city-owned hangar. The grant will cover approximately one-third of the project’s cost.

A public hearing concerning industrial revenue bonds for the High Plains Aviation LLC airport project was scheduled for 5:30 p.m. Aug. 18 in the City Council chambers.

The council approved two Midwest Energy contracts connected to airport development: $24,453 for single-phase electric service and $99,835 for three-phase service. The work will move overhead lines underground and provide three-phase power for future hangars. City Manager Ron Alexander said grants will fund the projects.

Confidentiality provisions were removed from both contracts because approved city contracts are public records.

The council also approved offering surplus city equipment through sealed bids. Bids are due by 2 p.m. Aug. 5.

During department reports, Brad Davis reported that employees reduced a power plant heat-exchanger repair from a projected $25,000 cost to approximately $13,000 by completing part of the work themselves. Davis also reported storm damage at the power plant and said line crews had largely completed repairs from the latest storm throughout town.

Dispatch Director Andrea Davis reported that a multiyear radio project now allows emergency agencies to use separate channels and a shared event channel during major incidents. The backup system was used after storm-related electrical problems disabled several channels.

Police Chief Jake Hess said the department is preparing for the Thomas County Fair and the beginning of school. Two recently hired officers are working but have not completed academy certification. One police officer position remains vacant.

The council entered executive session to discuss nonelected personnel.