Midwest Transparency Audit
Because government operates best in the light.
Higginsville 2018 Rate Study vs. 2026 Proposed Contracts
Recently, the City of Higginsville Board of Aldermen passed an ordinance raising water rates by 7%. Public statements made by the City Administration to the press claimed this increase was based on a study that recommended continued increases, and that neighboring districts—the City of Mayview and Public Water Supply District (PWSD) No. 2 of Lafayette County—were participants in that study.
Midwest Transparency Audit, LLC launched a public records investigation under the Missouri Sunshine Law to verify these claims. We requested the underlying data, financial agreements, and internal communications from all three agencies. Here is what the paper trail reveals so far:
Key Audit Findings
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Reliance on an 8-Year-Old Study: Despite presenting the data as justification for a 2026 rate hike, the City of Higginsville holds no current water rate analysis. The study relied upon by the City Administrator was actually produced on April 4, 2018. The invoice associated with this study dates even further back to May 30, 2017.
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No Joint Agreements or Financial Participation: Public claims that the City of Mayview and PWSD No. 2 participated in this study are contradicted by the City's own records. The Higginsville City Clerk confirmed in writing on August 10, 2026, that no memorandums of understanding or cost-sharing agreements exist with either agency regarding the study.
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PWSD No. 2 Admits to "No Records": In an August 11, 2026 response to our Sunshine Law request, the Custodian of Records for PWSD No. 2 formally stated that "no documents exist" in their possession regarding the water rate study, joint financials, or internal communications prior to July 20, 2026.
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PWSD No. 2 Rubber-Stamped the Rate Increase: Official meeting minutes and the board packet from July 20, 2026, show that the PWSD No. 2 Board of Directors unanimously approved the 30-year Water Purchase Contract. This locked in the 7% increase and extended the term to 2056. The board approved this without reviewing any underlying cost-of-service analysis or mathematical justification, as the contract was simply presented for approval during the meeting.
Subject: Discrepancy Analysis of City of Higginsville Wholesale Water Contracts
Target Agencies: City of Higginsville, City of Mayview, Lafayette County PWSD No. 2
The City of Higginsville has publicly claimed that its 7% water rate increase for 2026 is justified by a water rate study. Public records obtained under the Missouri Sunshine Law confirm that the study in question was finalized on April 4, 2018. A direct audit comparing the expert recommendations of the 2018 study against the proposed 2026 contract addendums for the City of Mayview and PWSD No. 2 reveals severe discrepancies. The City of Higginsville is not following the study's rate structures or its financial recommendations. The records prove that the City of Higginsville is utilizing the mere existence of a 2018 study to publicly justify a 2026 rate hike, while simultaneously ignoring the actual mathematical formulas and rate structures calculated within that study.
DISCREPANCY LOG: 2018 STUDY VS. 2026 CONTRACTS
A direct audit comparing the expert recommendations of the 2018 study against the proposed 2026 wholesale contracts for the City of Mayview and PWSD No. 2 reveals severe discrepancies. The City of Higginsville is actively ignoring the mathematical recommendations of the very study they are citing.
1. Rate Structure Type - 2018 Study Recommendation: Level Unit Charge. The analyst recommended abolishing declining/tiered rates to recover costs on an average basis. 2026 Proposed Contracts: Declining/Tiered Rates. The contracts apply a tiered structure dropping from $3.62 to $2.90 per 100 cubic feet. Audit Finding: NON-COMPLIANT. The City is ignoring the study's expert guidance on fair rate structures.
2. Wholesale Unit Charge - 2018 Study Recommendation: $2.66 per 100 cubic feet. The study calculated a "Cost to Serve" rate of $2.66 for special wholesale customers. 2026 Proposed Contracts: $3.62 per 100 cubic feet. The 2026 contracts assess a base tier rate of $3.62 for the first 1,000,000 cubic feet. Audit Finding: NON-COMPLIANT. The City is charging wholesale partners 36% more per unit in the base tier than recommended.
3. 3-Inch Meter Service Charge - 2018 Study Recommendation: $32.49 per month. The 2018 study recommended a flat $32.49 monthly minimum charge for a 3-inch meter. 2026 Proposed Contracts: $47.22 to $70.83 per month. Mayview is charged $47.22. PWSD No. 2 is charged $70.83. Audit Finding: NON-COMPLIANT. Base service charges have been inflated far beyond capacity recovery costs.