Dodge City local news summary

Commission approves $2 million water rights sale to National Beef

Agreement shifts development costs solely to buyer

City absorbs purchase price difference through overage fees

National Beef seeks ownership to avoid steep penalties

Rate reduction triggered by water rights ownership

City retains portion of recently acquired water rights

Water fund cash flow projected to remain stable

City pursues strategy to “rest” wells

Manager signals intent for future water acquisitions

1. Commission approves $2 million water rights sale to National Beef

DODGE CITY, Kan. — The city commission voted 4-0 Tuesday to approve a contract selling 574 acre-feet of water rights to National Beef Packing Company, LLC. The sale price was set at $3,500 per acre-foot, totaling $2,009,000. City Manager Nick Hernandez said National Beef first approached the city roughly three years ago seeking to acquire rights near the company’s existing operations and the city’s southwest water treatment facility.  

2. Agreement shifts development costs solely to buyer

DODGE CITY, Kan. — Unlike previous agreements where the city and National Beef split development costs 50-50, the new contract places the financial burden of infrastructure entirely on the company. Hernandez said that while the city will assist with regulatory transitions, National Beef will cover the costs of well construction, drilling, pumps, and system tie-ins.  

3. City absorbs purchase price difference through overage fees

DODGE CITY, Kan. — During the discussion, Hernandez said the city purchased the water rights for $3,750 per acre-foot but is selling them to National Beef for $3,500 per acre-foot. The $250 per acre-foot difference totals $143,500 (574 × $250). Hernandez said the city will cover that gap using overage fees National Beef paid this year, making the net financial impact on the city minimal.  

4. National Beef seeks ownership to avoid steep penalties

DODGE CITY, Kan. — City officials said National Beef pursued ownership of the water rights to reduce rising operational costs tied to excess usage. Under the current arrangement, the company pays overage fees when it exceeds scheduled allotments. Hernandez estimated that without the new deal, National Beef’s anticipated overage fees for 2025 would have exceeded $210,000.  

5. Rate reduction triggered by water rights ownership

DODGE CITY, Kan. — By owning the water rights rather than leasing them, National Beef will qualify for a reduced utility rate from the city. Hernandez said the rate for the company will drop to about $1.13 per 1,000 gallons, which he described as covering the city’s cost to operate and maintain the well system on the company’s behalf.  

6. City retains portion of recently acquired water rights

DODGE CITY, Kan. — The 574 acre-feet sold to National Beef represents roughly two-thirds of a larger package of water rights the city acquired recently. Hernandez said the city is retaining the northern portion of the acquired rights, with plans to eventually develop a well there and potentially tie two water rights together to pump from a single location.  

7. Water fund cash flow projected to remain stable

DODGE CITY, Kan. — A commissioner asked whether losing National Beef’s excess-usage revenue could harm Water Fund cash flow. Hernandez said the fund is projected to remain positive and sufficient to continue replacement and improvement of city services even without the overage fees previously generated by the beef processor.  

8. City pursues strategy to “rest” wells

DODGE CITY, Kan. — The discussion also highlighted a broader city strategy: acquiring sizable pockets of water rights to improve long-term sustainability. Hernandez said having water sources in geographically distinct areas—such as the south well field and the main town well field—allows the city to rotate production so wells can “rest and recover” rather than being pumped continuously.  

9. Manager signals intent for future water acquisitions

DODGE CITY, Kan. — Hernandez told commissioners the city is actively looking to purchase additional large blocks of water rights in the near future. He said officials need to keep identifying and acquiring rights in concentrated geographic areas as they become available to protect the city’s long-term water security.  

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