The City Council on Monday night discussed the possibility of
increasing its electricity rates by 3 percent beginning in April.
The rate increase would offset the cost of ongoing debt services
for utilities, City Administrator Jeff Davis told the council members
at the City's monthly meeting.
"This probably should have happened a year ago," Davis told
Davis said the City took a loss of $118,000 for the cost of utility
operation, and he anticipates as much as $120,000 without
The City has not increased its electricity rates
since October of 2009. Davis said reserve money
provided a "cushion" for the loss, but that is
only a temporary solution.
"You're looking at $3 for every $100," Davis told
council members. "...We waited too long to raise our rates."
After some discussion, the council agreed to revisit
the item at next month's meeting, where a formal
resolution will be presented to the council for a vote.
Davis said if the increase goes into effect in April,
customers should expect to see the change in June.
"It's a pretty small increase, but it will generate
enough to help with out debt service," said Mayor
In other action, the Council also approved an
Ordinance to allow the City Administrator to file
suit for property located 110 W.Washington.
The Mayor and City Council also discussed the
James Foundation's transfer of the library, park and
Davis said the Library Board continues to seek
an avenue that would be effective for the upcoming transfer of the library to