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City of Lyons’ Natural Gas Rates to Increase Starting in August, Council Discusses City’s Proposed 2026 Budget

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LYONS, Kan. — Natural gas rates in Lyons will be going up starting in August. On a 4-1 vote, the Lyons City Council Monday approved an increase in the charge per 100 cubic feet of usage the city adds onto what it purchases natural gas for.

Kansas Municipal Gas Agency manager of regulatory and rates Darren Prince presented a rate study to the council, which indicated current revenues are not meeting operational expenses, much less have any reserves which City Administrator Troy Houtman said this would remedy that issue. “This changes that to a situation where we have cash on hand.” Houtman explained, with a goal to have between 90 and 100 days of available funds.

This increase would take place in three parts, the first taking effect immediately of .255, then to .285 in 2026 and .32 in 2027 and beyond, which the Council could adjust depending on circumstances at that time. For the average city residential customer, this would by 2027 to a $14.40 increase over current rates.

Council member Debra Metzger voiced concerns constituents have raised about the proposed increase on top of water and wastewater fee increases, saying “with the water rates going up, now the gas rates going up, and all the additional things put on a bill, people aren’t going to be able to afford it.” Metzger was the sole no vote on the increase, with three members absent. As the four votes in favor constitute a majority of a council quorum that was sufficient for passage.

The Council approved expenditure of up to $25,000 for construction of a new dog shelter at the Wastewater Treatment plant site south of Lyons. Most of the cost for the building itself is being provided by the city of Sterling, with Lyons covering the cost of fencing and concrete work from FEMA reimbursements. Rice County has also indicated they may be wanting to help with this cost as they on rare occasions also have need for shelter services.

The Council approved an amended contract with Governmental Assistance Services of Lawrence for a low and moderate income or LMI survey for the City. This survey was needed to determine if at least 51 percent of the city’s residents fall in those two categories, which is a requirement for a number of grants offered through the Kansas Department of Commerce. The amendment involves the city providing staff and/or volunteers to conduct the actual survey work, which the company was originally going to handle. This reduced the contract cost from an original $4,900 to $3,100.

Resolutions were approved changing the dates for show cause hearings on dangerous and unsafe structures, two on West Lincoln and one on East Avenue South to August 18.

The Council also approved the appointment of John Villanueva to the Lyons Volunteer Fire Department. Council member Rick Miller abstained from the vote due to his also being on the Fire Department.

The Council continued discussion on the city’s proposed 2026 budget, as City Clerk Bailey Sayler reviewed a number of adjustments made to the original budget presented to them at a special meeting on June 30.

That proposal would have kept the city’s mill levy flat at 52.021 mills, but would exceed the revenue neutral rate, which is the levy that would raise the same dollars for 2026 as for 2025, by 1.658 mills. The current levy rate would increase city revenues next year by a projected $34,631. Most of the adjustments presented were within personnel services line items, which covers salary, benefits, and the employer share of health insurance and social security.