KINGMAN – The Municipal Utilities Commission will continue discussing the financial review of the wastewater system at its meeting at 5:30 p.m. Thursday in Council chambers, 310 N. Fourth St., so it can recommend to Council how cash reserves should be used.
There have been no rate increases since 2013, nor have there been rate reductions. The commission will consider recommending to Council the allocation of cash reserves for a five-year capital improvement projects plan, paying off debt from the Hilltop and Downtown wastewater treatment plants, or a rate reduction.
Potential projects identified total about $40 million, and include sewer line extensions, relocations, replacements and realignments. Not all projects could be completed, as the City has approximately $25 million in reserve, of which approximately $22 million would go toward sewer extensions. Those extensions entail sewer expansions or reaching customers not currently connected.
About half of the City’s 20,000 customers are connected to the sewer system, and about 90 percent are residential customers.
Tina Moline, City finance director, told the commission at its meeting March 22 that a rate reduction would be feasible, but at the cost of reducing the improvement projects.