Stillwater tasked with Rate Study Review
Sep. 21—Stillwater City Council will receive utility rate study findings and information from consulting firms through a six-week period starting Monday.
LM Vedder Consulting (electric), NewGen Strategies & Solutions, LLC. (water and wastewater), and Meshek/Jacobs (stormwater) will provide the cost to provide utility services to customers, rate recommendations and comparisons with other cities.
Rate studies are done to identify revenue requirements, provide revenue stability and predictability, and ensure fairness among customer classes, the City said.
Similar studies were conducted in 2019 and presented in 2020, but the Councilors at the time chose not to increase rates due to the economic impact of COVID-19.
Rate adjustments are now being revisited.
"The ultimate goal of utility rate studies and this entire process — Council meetings, upcoming community meetings, and recommendations to Council later in November — is to ensure that rates cover the cost of services and that the rates set are equitable to all of our customers," interim City Manager Brady Moore said in a news release.
Since 2020, some rates are now below cost of service and overall rate revenues have not kept up with operational and market cost increases, the City said.
Consultants will present information on possible rate changes and how they could affect households.
"The increase in operating costs and under-recovery of those costs through our rates has caused concerns as we anticipate future funding of operating and infrastructure needs in each of the utilities," Finance Director Christy Cluck said in the release. "As we evaluate rate structures that recover our costs, we continuously remain customer focused to find the balance between funding necessary infrastructure projects while limiting the impact to our customers."
Below are the dates for the presentations. Residents can stream the meetings on the City YouTube channel or watch on Suddenlink Channel 14 and AT&T U-verse Channell 99.
The mid-October townahalls are online.
Monday, September 25: Electric and Stormwater Utility Rate Study Presentation to Council
Monday, October 2: Water and Wastewater Rate Study Presentation to Council
Tuesday, October 10: Electric Community Townhall
Thursday, October 12: Water, Wastewater, Stormwater Community Townhall
Monday, November 6: Utility Rate Recommendations to Council
