LYONS, Kan. — A study presented to the Lyons City Council Monday night indicated a need to look at increasing gas system revenues to improve ending balances which have declined in two of the past five years.
Darren Prince, manager of regulatory and rates for the Kansas Municipal Energy Agency presented a study that took a look at revenue and expense over the past five years, in two of which the gas system ran a deficit.
Prince said at the end of 2022, the city only had 15 days of cash on hand in the gas system. Its recommended city operated utilities have at least 90 to 120 days of cash on hand.
At the end of 2024, the cash on hand amounted to 62 days of operating expenses.
At the end of 2020 the city had 125 days of cash on hand. That reversed as a result of Winter Storm Uri in February 2021, which caused many cities including Lyons to borrow funds to cover the extreme spikes in gas prices during that period.
Projecting operating projections out to 2029 under the current rate structure project the system will operate at a loss for each year, with 36 days of cash on hand projected in at the end of 2029. Prince said this projection assumes sales will remain flat, with increases projected to increase by three percent per year.
Prince estimated an increase of four percent would be needed to eliminate the forecast deficits. He recommended a rate study be initiated to determine the proposed level of increase and how rates are structured. Currently, the city has three rate schedules, one for city residential customers, one for commercial customers in the city, and one for all rural customers.
He added that rate increases would not have to happen all at once but could be increased over a couple of years.
In discussing this report, Council member Sheila Speilman asked if some sort of “mercy” provision be included in any rate structure, citing financial difficulties many people face in paying utility bills in general, especially during the winter months. City Administrator Troy Houtman said he would take a look at this.
The issue of fireworks, long a point of contention, was brought back to the Council last night. Specifically, whether the allowable dates for discharge of fireworks should be increased from the present July 4th only with an exception when it falls on a Sunday and the following day is designated as a holiday. Lyons allows sale of fireworks July 1-4.
Some divergent views were raised. Council member Debra Metzger recently asked constituents in her district their views, and most people had no objections. On the other hand, Council member Angela Evans expressed concerns about how the noise impacts pets and those with Post Traumatic Stress Disorder. She cited the case of one veteran she knows who has to go to his basement and stay there on July 4th, and also has to sedate his dog. That veteran also noted if fireworks discharge would be extended, he would have to leave town for those days.
Spielman also brought up issues about enforcement of current restrictions. In the end, it was the Council consensus to leave the current regulations as they are.
This discussion came as the Kansas Legislature during the 2025 session approved extending the dates when consumer fireworks at seasonal stands can be sold by nine days, extending that from June 20th to July 7th. Locally, McPherson County Commissioners Monday approved that extension in their regulations. It also opens the door for year-round fireworks sales under certain circumstances.
The Council discussed issues involving “dumpster divers” who have been getting to local business trash dumpsters. Police Chief Justin Holliday said he’s heard a number of complaints about trash being strewn about after bags are taken out of them and opened, oftentimes searching for thrown out food. Three businesses in particular have been hard hit with this.
Among options discussed were requiring businesses to lock those dumpsters or otherwise secure them so they could not be accessed. Holliday noted one store did try locking theirs, but locks were being broken
The Council approved a $11,970 contract with Governmental Assistance Services in Lawrence to conduct a low- and moderate-income survey, which is a necessity to
be in a position to qualify for Community Development Block Grant funds for the Wastewater Treatment Plant project.
Those grants require a community to have at least 51 percent of its residents falling in the low to moderate income classification. According to the 2020 Census, Lyons had an LMI percentage of 41.5 percent. Assistant City Administrator Tanner Faust said having a consultant doing this rather than it being done by city staff tends to be looked upon more favorably by state officials in that it would be considered to be more statistically accurate.
The Council adopted the Kansas Homeland Security Region G Hazard Mitigation Plan. This plan involves a number of counties in south central Kansas and looks at what hazards are present in the region and in individual communities. Being part of this plan is a requirement to be eligible for any number of disaster related assistance.
The Council approved the first two portions of a revised personnel policy and guidelines. The sections approved deal with introductory statements and position classification, which Human Resources Director Jennifer Wood presented at the April 7th Council meeting. Wood then reviewed the next section of the policy, dealing with recruitment and promotion which saw extensive revisions.
There was a lengthy discussion on residency requirements and response times, which led to a council consensus to extend the response time for all but three city employees from 15 to 30 minutes. Under existing policy, the City Administrator, City Clerk and Chief of Police are the only city employees required to live within the city limits, and that is included in a separate ordinance.
Among options that were brought up was the potential of a policy where residency requirements could be waived on a case-by-case basis, which the Council was willing to take a look at, given current factors related to available housing and situations where one spouse works in one city, the other in another city, and they live at a midway point. Action on that portion will be taken at the May 5th Council meeting.
It accepted the sole bid from Justin Holliday for abatement mowing in 2025. The bid calls for a $190 per hour charge, with a two-hour minimum with a $170 an hour return fee. These abatement charges, if not paid, can be added to property tax bills as a special assessment.
The Council approved an amended lease agreement with Maxwell Aviation for space it used for aerial spraying operations at Lyons-Rice County Airport. This agreement increases the annual rent charged from the current $2,000 to $2,500 for the remainder of 2025 and makes it consistent with what other sprayers using the Lyons airport pay.
During the public comment portion of the meeting two women addressed the Council on the possibility of having a trap, spay, release policy for feral animals in the city.
It also approved a proclamation designating May at Motorcycle and Safety Awareness Month. At the conclusion of the meeting a 20-minute executive session was held to discuss matters of non-elected personnel.
