July 20, 2000

City To Provide Information For Higher Utilities Rates

From The City Of Manhattan

The City of Manhattan will be providing information and recommendations from the consultants Water and Wastewater
Utilities Plan and Cost of Services Study. This Study provides recommendations and actions steps for the future plans for the
City’s water and wastewater treatment facilities.

On Tuesday, July 25, the City of Manhattan will hold a public hearing of the proposed 2001 City Budget which includes a
recommendation for a rate increase in Wastewater fees. This hearing will be held during the City Commission Meeting
beginning at 7:00 p.m. at the City Commission Room, 1101 Poyntz Avenue.

There will also be a Public Open House on Wednesday, July 26 at 5:00 p.m. and a Public Advisory Team Presentation on
Wednesday, July 26 at 7:00 p.m. in the City Commission Room.

The process of making drinking water and treating wastewater is a critical element in maintaining the environmental vitality
and quality of life for our community.

The facilities that ensure these water resources are treated and managed properly and controlled through regulations imposed
by federal and state agencies.

These regulations, along with a growing demand from our citizens, make it imperative that safe drinking water is provided to
Manhattan’s utility customers, and that properly treated wastewater is discharged to the Kansas River.

The scope of this study is comprehensive and provides a plan for ensuring that adequate financial resources are provided to
meet expected future public health and environmental needs.

A rate increase is being recommended for both residential and commercial users to pay for the short-term and mission-critical
capital improvements to the wastewater facility. This increase would also restore the needed cash reserves in the Wastewater
Fund and pay for additional capital improvements for the next several years.

This is the first proposed rate increase in the Wastewater Utility fund in 12 years.