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

Help is on the way. A bill signed by Gov. Laura Kelly Wednesday could ease the immediate burden Humboldt faces from its utilities-based financial crisis. Recall, rate increases on natural gas during the recent cold snap slammed cities across Kansas, including Ellinwood, Pratt, Altamont, Winfield, Lyons, Burlingame and Humboldt, with unmanageable utility costs. Humboldt’s total bill was $1.6 million, a wallop to both the city and residents. City administrator Cole Herder said, “I have an example of one family whose bill is typically under $200 a month. Their bill for this month would have been $5,400. That’s an exceptional case, but I just know our residents can’t stand that. … And our major manufacturers, it’s just astronomical the amount they’d have to pay,” he added.
Source: The Iola Register