By James B. Bartle
It appears that the Sullivan City Council may be moving in a direction not to pass a four percent electric rate increase on to its residents. The city was informed by its electric supplier, Sho-Me Power, that a four percent increase would be coming to its customers in April.
The matter was brought up before the Sullivan City Council on Tuesday night during their regular meeting.
Alderman J.T. Hardy kicked off the debate when he presented his ad hoc committee report to the city council.
Hardy explained some changes to the way utility fees, such as reconnection and connection charges, are dispersed in city revenue. He felt that these fees could be placed into its proper fund.
Hardy commented that, presently, reconnects and connection charges go into the electric fund rather than being split into electric, water and sewer. The committee felt that with the disbursements of these funds it could help adjust rates.
Hardy then spoke about the proposed increase of four percent which would amount to about a $400,000 per year increase to the city. The ad hoc committee recommended the city absorb this cost rather than pass it on to its utility customers at this time.
“My suggestion is to absorb this increase at this time,” said Hardy.
Mayor James Schatz felt he had a problem with the city absorbing this increase as he did not want to see the city funds collected from electric rates diminish.
Hardy explained that the city has some $6 million in the electric reserve funds. He felt that the city, instead of putting $800,000 into this fund from electric sales, if the rate increase is absorbed then the city would only put in $400,000. He felt it was in the best interest of the city to help its customers at this time rather than filling the city coffer.
“I’m very concerned about keeping the city in the black and I don’t want to see revenue problems down the road,” said Schatz.
Alderman Jarrett Dace voiced support for the city not increasing the electric rates to its customers.
“We have a chance to spend less and put money back in the pocketbooks of our residents,” said Dace. “We need to take care of our citizens and that starts right here, right now.”
Mayor Schatz commented that the council wants to do what’s best for the residents and the city.
There was some discussions about future increases from Sho-Me Power in the coming years. The council expressed that, while they could possibly absorb the increase this time, any future increases would probably have to be passed on to its customers.
Alderman Hardy questioned city administrator Mark Falloon on whether he thought the city could absorb this rate increase.
Falloon replied that he thought the city could in the existing budget, but it could lead to a larger increase down the road.
Alderman Dace again commented that he receives complaints from residents daily on the city utility costs. He cited a woman that had just spoken with him and her rates are three times the cost it was in previous years for the same services.
“I’d like to see the ad hoc committee recommendations brought before the council and put to a vote,” said Dace.
The council took no action to raise the rates and took no action not to raise them.
Alderman Dace requested every resident in the city to call city hall, call their alderman and the mayor and voice their opinion on the electric rate increase one way or the other.