Print edition: 
WICHITA — Many Wichita water customers could see their bills increase by about $10 under a proposed 15 percent rate hike that follows a series of financial miscalculations by water utility officials, officials said today.
Wichita City Council members will have to vote on the increase in coming weeks.
But they said they're deeply frustrated because they have very few options.
If the city doesn't shore up the water utility's finances, it won't have enough cash to cover expenses and won't be able to issue future bonds to pay for important projects.
"At a time when we haven't fully recovered — certainly haven't even begun our steady climb out of this recession — it's going to be more frustrating news on top of an already burdened community," council member Jeff Longwell said. "I'm every bit as frustrated as they are."
The water utility's financial woes were caused by water officials — including utility director David Warren, who abruptly resigned earlier this week — miscalculating water consumption and revenues, spending far more on a program to increase the size of sewer pipes and other oversights, City Manager Robert Layton said at a news conference today.
Water officials projected customers would use 59 million to 63 million gallons of water per day. It turned out customers consumed about 55 million gallons.
Consumption has declined about 13 percent since 2006.
"We were not conservative enough in estimating the impact wet weather would have on consumption," Layton said.
The debt is largely driven by the Equus Beds Aquifer Storage and Recovery Project that is expected to push back salty water and inject enough water to provide resources for the region through 2050.
The project involves taking excess flows of the Little Arkansas River, purifying it and pumping it back into the aquifer.
New estimates show the project could cost $550 million — up from the $400 million figure previously used.
If approved by council members, the 15 percent increase would take effect June 1. It would affect Wichitans and nearby cities and entities that buy water from the city.
Residents who use very little water — about 3,000 gallons — would see bills climb from about $26 to $29. High-use residential users would see a nearly $18 increase.
Commercial customers who use about 100,000 gallons would see a $52 hike. Industrial users who consume 10 million gallons would see a nearly $5,000 jump, according to city calculations.
More hikes would follow, though Layton said it's not clear how big those increases would be.
Prior projections called for roughly 3 percent increases each year through 2016.
Asked for his reaction, Mayor Carl Brewer, his face stern, said:
"It's probably the same reaction you see on my face today. I'm not very happy about it."
Among other moves Layton is recommending are:
* Hiring a consultant to conduct an independent review of the ASR project and see if new technology or different approaches would be better than what's planned.
* Changing water utility management. Warren has retired and will be replaced by Public Works Director Chris Carrier. Then the city will seek an interim consulting firm to manage the utility. A national search for a permanent replacement will start as well.
* Shifting the water utility's finance staff into the finance department to broaden oversight.
* Asking council members to approve a charter ordinance for the sale of the 2010 bond issue and issue debt.
Layton said the city is analyzing the possibility of slowing or freezing the ASR project. But canceling current contracts could trigger costly penalties, he said.
Council members largely voiced confidence in what ASR has done to date, but some said they want more analysis of future phases of the project.
Council member Janet Miller said the city can't let itself become like many other cities nationwide that struggle to provide water.
"To do nothing is not an option," she said.
For more on this story, see Friday's Wichita Eagle.
