Lansing City Council hears results of utility rate study, finalizes bond actions; City hall transitioning to former middle school

by Joshua Sharpe

The Lansing City Council met in regular session Monday, December 1 with Mayor Mike Verdon and all council members present. The council addressed a full agenda focused on utility finances, infrastructure close-outs, bond documentation, and liability housekeeping related to the transition of City Hall into the former Lansing Middle School building at 696 Main Street, a change that was planned to be completed Friday, December 5.

WASTEWATER AND WATER RATE STUDY
First on the meeting’s business agenda, Chris McKee introduced herself as a technical advisor to small communities through Midwest Assistance Program, an agency whose focus she described as being able to “come into small communities like Lansing and help you guys out and make sure that you’re successful.” One of the services provided to Lansing was a full review of utility finances: “So, one of the things that we do is we have done a rate study for both your water and sewer systems,” McKee explained.

McKee told the council that the numbers show mounting strain. Looking at recent history, she said, “the last two years of actuals from the fiscal year’s ending… they came out as a loss for both the water and the sewer system.” In her view, that contradicts what an enterprise utility is supposed to be: “They have to be self-sufficient. They have to be self-supporting. So, you have to be able to bring enough revenue to pay all of your expenses within that.”

For the sewer fund, McKee summarized the core recommendation bluntly: “That one is for the sewer fund and based on the findings, it is recommended that you raise your base rate from $30.38 to $45.72 and that will get you guys just at break-even.”

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