Humboldt City Administrator Cole Herder breathed a sigh of relief last week when Gov. Laura Kelly signed legislation that issued $100 million to help municipalities pay sky-high utility bills incurred from the arctic blast in February. Because cities can neither take out commercial loans nor go into debt, they have little latitude but to pay their bills in a timely manner. Humboldt has been warned to expect a bill for $1.6 million for natural gas usage during the Jan. 20 to Feb. 20 billing cycle. Typically, the charge is $35,000. The city’s entire annual budget for natural gas is $375,000. The state loan program will allow municipalities affected by the rate hikes to apply for 10-year loans at a 2% interest rate. Herder hopes to apply for a loan to cover the full $1.6 million. Over 10 years, payback would be about $163,200 a year and require a 60% increase in residents’ utility bills.
Source: The Iola Register
