By JONATHAN SNYDER
Increases to electricity rates over the next five years were approved by the Common Council Tuesday.
In reaction to recent federal regulations the city’s electric provider, Wolverine Power Cooperative, announced that their rates will increase in 2030.
The approved increases by the city intend to help give slow growth, rather than having rates jump by the estimated 6-7% in 2030. Additionally, the funds raised intend to help further stall rate increases by collecting revenues in a slush fund.
The rates will start at $3.90 per meter per month and $0.097 per kilowatt hour for the first 500 kilowatt hours for residential services in 2025, which will increase to $4.50 per meter per month and $0.109 for the first 500 KWH hours in 2029. Commercial services rates will start at $7.75 per meter per month and $0.117 per KWH for the first 500 KWH in 2025, increasing to $8.80 per meter per month and $0.132 per KWH for the first 500 KWH in 2029.
“I think it’s good that we are trying to plan ahead so the rate payer doesn’t get crushed,” Council member Josh Hunt said. “We have a large change in wholesale electric buying … I don’t know what’s really going to happen but it’s better to plan ahead than to react.”
The council also signed an ordinance that allows the city to enter into build, operate and transfer (BOT) agreements. These agreements allow a private entity to build and operate a larger scale project, in hopes to recoup their investment or turn a profit, then give the facility over to the city after a set amount of years. Council member Scott Mentzer clarified that no BOT transfer proposals have come before the council. The council does not intend to replace the traditional request for the proposal process they currently use for projects
“It basically moves the responsibility for completion of all the tasks underneath the developer,” Mentzer said. “And eliminates a lot of the potential change order activity that we see today in projects. The developer would see a RFP (request for proposal), they would make a bid against the RFP and then they would be responsible for fulfilling the entire RFP regardless of change orders. They own the project, and then after they complete the project they transfer it.”
Mentzer cited the potential of a new community pool as a project they could enter into a BOT agreement for and that BOT agreements could lead to more flexibility with contractor selection. City Attorney Tony Crowell stated that BOT agreements also allow the city to make requests for information.
Additionally, a proposal for additional compensation during holiday hours was submitted by 911 Director Mike Miller. Because of the dispatch center’s 24-hour operation and shortstaffing, Miller proposed that employees be given a lump sum of extra pay for holiday hours at the end of the year, in addition to an extra holiday for the department.
While the council seemed agreeable to extra compensation for holiday employees, they acknowledged that every public safety department should be included in any proposals. They were also hesitant about the extra holiday.
Council member Rick Elwell additionally advised that a review of paid time off for the public safety sector is slated for January, and wanted to see those discussions looped into the review process. The matter was continued until January.
Fund transfers for the Fire Department and Parks Department were also approved by the Council.
Fire Chief Don Craig requested a $2,500 transfer from his overtime line item to the repair and maintenance line items to cover invoices from LabTech software, which has increased their scope to offer timesheet services for the department.
Fiechter requested a transfer of $16,700 from a combination of the department’s travel, utilities, repair and maintenance and equipment line item to their capital improvement Fund to help with paying for improvements to Roush Park.
Furthermore, the council and Mayor John Whicker approved Mentzer, Hunt, Elwell, Sarah Reed and Chandler Gerber for the Redevelopment Commission in 2025.
jonathan@news-banner.com
