The Rolla Board of Public Works will hold a public hearing Tuesday, June 25, regarding Rolla Municipal Utilities' (RMU) proposed fiscal year 2014 budget and fiscal year 2014 rate changes.
The community is invited to give input during the board's regular meeting, which begins at 5:30 p.m. in the tucker Professional Centre board room, located at 101 W. 10th St. A handicap entrance is located at 103 W. 10th St.
As proposed the budget includes operating revenues of $29.7 million, operating expenses of $29.8 million and a capital improvement budget of $2.4 million.
In addition to seeking public comment on the budget, the board will also accept comments regarding proposed rate structures and pricing changes for both water and electric departments.
Water volumetric rates, as proposed, would increase 20 cents per 1,000 gallons from $2.70 per 1,000 gallons to $2.90 per 1,000 gallons.
Service availability fees (SAFs) would change from a flat rate of $11 per meter per month to a graduated rate ranging from $9 per meter per month for small residential and commercial water meters to $125 per meter per month for the largest water meters in the RMU system.
Fire sprinkler line fees, for those customers with fire protection systems, would also be modified to a graduated rate.
Electric rates, which haven't been raised since 2006, would be modified to eliminate tiered energy changes in the residential and commercial classes resulting in a flat energy rate of $0.089/kWh.
SAFs would increase in all classes with the commercial class split between single-phase and three phase SAFs.
Demand charges for power and industrial service customers would be increased from $8.50/kW to $9/kW. A new area/street lighting class would also be created.
Finally, the threshold for the power service class would be increased from 50kW to 100kW resulting in the elimination of church and school classes.
The SAF is a fixed, flat fee designed to cover the basic cost of delivering water and electricity to each customer. It covers expenses RMU incurs regardless of how much water or electricity is consumed.
The charge helps cover items such as the basic components needed to build and maintain RMU's distribution systems. Components like water mains, fire hydrants, power poles, wire, transformers, service lines and meters needed to provide a safe and reliable infrastructure. It also covers customer service and basic maintenance of the system.
As proposed, water revenues would increase 1.3 percent and electric revenues would increase 1.8 percent due to the restructuring and rate changes. Cost impacts to individual customers will vary from these figures based on their individual usage patterns.
If approved by the Rolla Board of Public Works at its July meeting, the budget and rate changes will then be presented to the Rolla City Council in August for comment and implemented beginning with Oct. 1, 2013, billings.
Page 2 of 2 - Documents pertaining to the proposed budget and rate changes are available for review at the RMU business office, located at 102 W. Ninth St. or online at www.rollamunicipalutilities.org.