Lawrence City Commission to consider alternative billing models for utilities

At their work session Tuesday, city commissioners will discuss potential changes to how water is billed to Lawrence residents.

At the commission’s request, city staff have been looking into alternatives to the current rate structure. Options that will be brought before the commission include a tiered structure that would provide reduced rates for low-income customers, as well as different rates for certain high consumers of water.

The city’s finance and utilities departments have been working with outside consultants for the past 18 months to develop the new rate model.

The options that will be presented to the commission include different rate structures, such as a uniform rate, what’s called a declining block rate and a residential inclining block rate. Some of the rate options are intended to promote conservation and/or reallocate costs of high demands to those who “peak the system,” according to a city memo. The model also has the capability to have a separate water rate for irrigation meters.

Staff will be presenting the potential changes to the city’s billing methods and taking input from the commission about how to proceed. Staff will also present the utilities department capital improvement plan, the scope of which will be dependent on the rate model decided upon by the commission.

The staff recommended CIP for 2018 to 2022 is currently projected to cost $130 million. It includes projects such as Advanced Metering Infrastructure, the design of the Kansas River Waste Water Treatment Plant for nutrient removal, a field operations building and Bowersock Dam repairs.

The discussion comes as a rate increase for water, solid waste and stormwater passed by the commission in 2015 is scheduled to go into effect Nov. 15. The total monthly increase for all three services is about $5, assuming an average residential customer using 4,000 gallons of water per month.

If the commission decides to go forward with changes, the billing model would be developed and finalized as part of the commission’s 2018 budget considerations in the spring.

City commissioners will meet at 4 p.m. Tuesday at City Hall, 6 E. Sixth St.