HUMBOLDT — Stubborn natural gas prices mean Humboldt needs to add $200,000 to its gas utility fund, Cole Herder, city administrator, told council members at Monday night’s meeting.
“I didn’t anticipate the natural gas rates to stay high this long,” Herder said. “Unfortunately, we can expect more of the same until spring.”
Russia’s invasion of Ukraine plays a big role. U.S. exports to Europe remain strong to supplant its previous reliance on Russia.
“Last year, rates were $2 to $5 a unit. Today, we’re paying $8 to $10 a unit,” Herder said Tuesday afternoon.
“We’re just 2% over budget now,” Herder said. The city has more than $1.1 million budgeted for gas expenses.
“Going into winter, we believe there is enough in reserves,” Herder said.
The city participates with the Kansas Municipal Gas Agency.
By state statute, a city is not allowed to go over what it has budgeted.
A hearing to discuss the gas fund amendment will be at 6 p.m. Dec. 12 in the city hall meeting room.
LISSE Regehr, CEO of Thrive Allen County, and Jonathon Goering, Thrive’s economic development director, discussed their partnership with Humboldt.
Since 2020, Humboldt has paid Thrive $10,000 a year to help bring business its way. Most recently, Humboldt has benefited from a $50,000 Moderate Income Housing Grant that Thrive wrote that is going toward the construction of a single family house.
Pending is a $13,000 SEED grant from the Kansas Department of Commerce that would benefit Humboldt’s grocery store and library.
Most significantly is a $3 million grant that Thrive wrote that will assist Allen County in building infrastructure at its airport to ensure it is better equipped to attract future projects and opportunities.
“Our first endeavor is recruiting an air museum that is already very interested in relocating to Allen County,” said Regehr. “We believe this will bring additional tourism that will positively impact Humboldt businesses, especially restaurants and Airbnbs.”
Also contributing to Thrive’s economic development efforts are the City of Iola, Allen County and Iola Industries.
Allen County agreed to increase its contribution by 50% from $20,000 to $30,000; Iola Industries maintained its $20,000 contribution and the City of Iola set its contribution on the value of 1.5 mills, which roughly equals $50,000, an increase of 150%.
