Spikes in Republic water/sewer billing scaled back from two to 12 years, officials propose slow roll water, sewer rate changes

The Republic City Council is considering a stunning reversal of the steep water and sewer rate increases approved in January 2025. 
At the city council’s Oct. 20 meeting, Chief Financial Officer Bob Ford introduced a budget amendment pulling back on the 64 percent increase in water and sewer rates in one year, which would continue to rise annually. After an outcry from the public, in March the city froze scheduled increases in water after the first year. Wastewater rates still increased by 16 percent. Under the vision statement of “doing the Right Thing at the Right Time for the Right Reason,” Ford advances what was called a “fairer” bill calculation methodology, “one that is equitable to all rate payers and can be used for both water and wastewater” for the next three years. 
Along with cutting back the pace of infrastructure improvements that spurred the rate increase, Ford explained the new plan would actually decrease rates in 2027. For water, the base rate will drop in 2027 from $16.75 for the first 1,000 gallons to $9.50, costing an additional $9.50 per each additional 1,000 gallons. In each of the following two years, the rates would rise by 15 percent annually, going to a base of $12.57 for 1,000 gallons in 2029. 
Wastewater rates would follow suit. Treatment of the first 1,000 gallons would drop from $36.75 to $25.50, and cost $25.50 for each additional 1,000 gallons. Those rates would rise by 10 percent in 2028, then up again by 7.5 percent for 2020, costing $ 30.15 per 1,000 gallons by then. 
Out-of-town water and sewer users would face a 50 percent premium but also see relief. Water users beyond the city limits would see their base water rate fall from $21.39 for the first 1,000 gallons to $14.25 in 2027. Wastewater rates would also change, going from $55.12 for the first 1,000 gallons to $38.25 in 2027, then rising annually to $45.23 in 2029. 
By matching the initial gallon rate with the subsequent gallon use, Ford said the system would be easier to figure by both customers and city staff. The rate scale would continue to escalate “until both funds reach a steady rate.” The strategy would extend the proposed 2025 increase over a 12-year period instead of two years, making “a fair and more adaptable rate.” 
Information on the change went online. Ford said the sewer rate change warranted a public hearing in two weeks. A hearing was not required on the water rate change. 
Action on the proposal was expected at the Nov. 3 council meeting. 
In further economic action, council members approved the budget amendment proposed earlier in the month, reflecting actual spending and revenues. Changes reduced capital expenditures by $545,000 in line with slower spending on capital projects, reflected in the rate adjustments. An additional $2.5 million was spent, however, relating to the April 29 hailstorm, paid by insurance proceeds and internal transfers. 
 
Budget for 2027
Ford introduced a budget for 2027 coming out of the workshop that preceded the council meeting. The comprehensive financial plan included a 10-year capital improvement plan. Ford explained how the city anticipates $42 million in revenue during the year and expenses of $38.9 million. Plans call for spending around $45 million in the next three years on capital projects, and of that, $30 million will be spent in the coming year. 
The city’s $44 million in revenue, he noted, comes largely from two sources: sales tax (31 percent) and $38.5 million in utility payments (36 percent). For the first time, he noted, utility billing revenues would surpass sales tax for the first time to support the capital investment program. Ford said sales tax continues to grow. He cautiously anticipated it would rise another 2 percent next year. 
An additional $6 million used for capital improvements comes from assorted sales taxes allocated for a specific use. In the coming year, the city expects to receive $30 million from the State Revolving Fund for utility expansion, but will only spend $10 million in the first year, leaving $20 million in the bank that will show initially as surplus. 
Combining the surplus from operations and capital projects creates a reserve of $24.4 million.
Total spending for the coming year will rise to $61.4 million, divided between the operating fund and capital expenditures. The money spent on retiring debt will continue to grow as capital projects increase. Ford anticipated spending $7.2 million on debt service next year, about 21 percent of the total, and 85 percent of that would go toward water and sewer projects. People remain the city’s greatest expense, making up 58 percent of the budget in wages, salaries and benefits. 
Grant application
Council members approved a grant application request from Chris Parks, the parks and recreation director, seeking $350,000 from the federal Land and Water Conservation Fund. Money would be used to replace the oldest playground equipment in the park system at J.R. Martin Park with new units with adaptations for physically challenged users. 
The city would be required to match the grant, if approved. Parks said he is pursuing another grant that would provide $100,000 toward the match, leaving the city only obligated for $250,000. The grant application is due by Nov. 13. Awards will not be announced until the fall of 2027. 
In the consent agenda, council members approved a list of qualified architectural firms to be used as needed in 2027 and 2028. Five firms were selected from a list of 18. 
 
Subdivision action
At the council’s Oct. 6 meeting, two additional subdivision proposals received the green light. 
Council members approved the final plat for Brookside Estates, dividing 41.1 acres into 115 lots. Requested by SGF Landing LLC, owned by Mark Still of Branson, the subdivision submitted its original plan in April 2018, part of the Trails at Valley Park development district. 
The subdivision is located on the south central edge of the city, south of Miller Street (Farm Road 186), east of Main Street (Hwy. P) and west of Lynn Avenue (Farm Road 89). The section in question is bordered diagonally by the Southern Star Central gas pipeline at its northwest corner. It has one east-west street, Grace Street, on the south end connecting Lynn Avenue and Main Street in pre-existing subdivisions. The internal part of the subdivision has a looping street with three names running around two groupings of houses and a large open section designated for stormwater retention. 
The project will include almost 5,000 linear feet of new streets, as well as water and sewer mains. Documents submitted to the council made no mention of any new sidewalks. There will be a 25-foot-wide tree buffer at the far south edge of the subdivision. 
A second ordinance approved a developer agreement over the Tiger Creek subdivision, located in the northwest corner of Hwy. ZZ and East Hines Street, to upsize approximately 1,075 linear feet of water main from eight inches to 12 inches. The city requested the change as part of its master water plan to provide broader benefits to the city as a whole. The city will purchase the needed materials and reimburse the developer, S6 Tiger Creek LLC of Republic, for installation. The subdivision includes 115 lots and is in Phase 1 of construction. 
 
Reports
City Administrator Colten Harris reported the long-awaited ribbon-cutting for the city’s new wastewater treatment plant will be held at 10 a.m. on Oct. 29. Harris commended those who invested time over the years in making the achievement possible. Mayor Eric Franklin called it the largest city investment on record. 
Harris also commended Bob Ford and Jake Jones of the finance department for their meticulous presentations on the current and future city budgets and the rate revisions for water and sewer customers. “As Republic continues to grow, we need to be thoughtful about how we maintain the services our residents depend on today while also preparing for the needs that we know will be coming tomorrow,” Harris said.  
During the meeting, several persons mentioned the recent Guns and Hoses baseball game between the fire and police departments, while strategically avoiding mentioning the final score. The firefighters won. Last year, the event raised $6,400 for the Shop with a Hero Christmas event that helped 27 children. Donations this year have totaled $1,100 to date and are still being accepted by the police department. 
City officials will recognize their employees for years of service on Nov. 11. 
 
Honor Flight proclamation
Mayor Franklin at the beginning of the meeting issued a proclamation recognizing the Honor Flight program taking place the day of the meeting. He encouraged anyone available to go to the airport to welcome the honorees home. Franklin also commented on the “small-town” feeling of Republic that he felt still pervaded events like a Friday night football game. He noted a recent game even included a flyover by military jets, one of which was flown by a Republic graduate, an occurrence Franklin said had only taken place one other time in Missouri.