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Options for rate hike on agenda for City Council

New electric rate increase would be second for 2012

October 1, 2012
Anne Blankenship ( , The Daily Freeman Journal

The City Council of Webster City will review three different options for increasing electric rates for customers in the community. Council members will discuss those options at tonight's meeting that begins at 7 p.m.

At the last meeting, the council tasked City Manager Ed Sadler with bringing some options to the table in October. For the past two years, the city has passed along lower electric rate increases than those that the city receive from its electric wholesale supplier, according to Sadler. The most recent increase from the wholesaler was 11 percent. A rate incease of approximately 6 percent was approved earlier this year. He said this was done in an effort to hold down prices for its customers.

"It's necessary to at least raise rates by the 5 percent that the city did forego during the most recent rate increase in early 2012," he said in a memo to the council.

In that memo, he offered three options: one to raise the base rates and energy charges by 5 percent; to raise just base rates by about 20 percent for all rate categories and a third option would raise energy charges for all categories by 6.75 percent. Raising the rates at least five percent would result in an additional $475,000 in revenue per year, he added.

Other business

In other business, the City Council will look at awarding a contract for tree trimming to provide electric line clearance. A total of three bids were received for the work, with Asplundh Tree Expert Co. providing the low bid of $65,250.

A resolution approving a change order for the Jordan Well Project Contract No. 2 - Raw watermain construction with Synergy Contracting LLC of Bondurant, will be considered. A motion for a temporary construction and permanent easments for the new well raw water line project from Terry and Kimberly Olson, Timm's Auto Body L.C., and Tony Nessa will also be considered.

Meeting not televised

City officials said due to technical issues with the recording equipment, Monday's meeting will not be recorded or televised on Channel 12.



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