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GoogleThe first increase -- a 2.9 percent across the rate scale -- will take place Jan. 1, 2010.
The second phase of the rate hike -- 3.41 percent -- will go in effect on June 1, 2012.
The council had requested that the rate hike be broke out into a pair of phases to ease the economic impact on customers, Mayor Tom Jones pointed out.
The total 6.35 percent increase in electric rates is the first for the city since 1994, according to Bob Clifford, of Umbaugh and Associates, a firm hired by the city to conduct a rate study.
A brief final public hearing was conducted as part of the council's meeting.
The council then approved the rate ordinance by a 3-1 vote. Council member Linda Bedwell cast the dissenting vote.
Councilman Jerry Ellett did not attend the meeting.
Clifford explained the increase is necessary because the city-owned electric utility lost money.
The consultant said because of the economic impact the entire rate increase would have on the utility customers, it should be broken up into two phases.
He pointed out that the last rate increase was 15 years ago and the reason the utility was able to go so long without a rate hike is because the city grew and increased electric consumption.
But he added, "At this time your utility company is losing money and so the rate increase is necessary."
Clifford said the first phase increase will "essentially get the utility back to a break-even point" with cash flow.
The consultant said even with the upcoming rate increases, the city's utility charges will only be "slightly higher" than Duke Energy's rates.
In other action, the council learned that the city has been awarded a $125,000 Housing Rehabilitation Grant through the state Community Block Grant program.
The council agreed to use the money to assist with improvements to nine homes from among 17 applicants.
The council capped the improvements to $15,780 per residence.
The improvements can include the installation of energy-efficient windows, doors, heating and air conditioning systems, thermostats, roofing and lighting.
Southern Indiana Development Commission (SIDC) representative Jenny Dearwester told the council that the projects would be bid in July 2010 with work to start next August.
Mayor Jones announced to the council that he is working on an Energy Conservation Grant -- which is part of the federal Stimulus program.
The mayor said applications, open to cities that have under 35,000 population are due by Dec. 7.
The city is applying for two grants under the program worth up to $250,000 and $100,000 apiece.
The focus of the grants will be to retro-fit city buildings and property with energy-efficient lighting and other electrical components designed to save utility consumption costs.
He added, "We will use local contractors to do this work."
In other matters, the council:
Heard from fire chief Gary Tannehill, who reminded residents that this is a good time of the year to check carbon monoxide and smoke detectors in homes.
Learned from police chief Troy Jerrell that a new Citizen's Police Academy class is forming and will start in January 2010. He said there are about 10 slots in the class. Anyone interested should contact the police department at 847-4411. Jerrell also reported a recent very calm Halloween with few problems.
"For the most part it was very quiet," he said.
The chief did caution residents to be aware there have been some recent thefts from vehicles and he urged care and said to lock up vehicles and take keys with you.
"We've had a few people learn that lesson the hard way," Jerrell added.
Learned from Mayor Jones that the recent Spookfest celebration at Humphreys Park was a very good one. He thanked area merchants for donating more than 200 pounds of candy for the event.
The mayor also announced that the city hall will be closed Wednesday (Veteran's Day) as well as Thanksgiving (Nov. 26) and the Friday after Thanksgiving (Nov. 27). The closure will result in a change in trash pick-up. The trash scheduled to be collected on Nov. 26 will be done on Nov. 25. Trash slated for pick up on Nov. 27 will be collected on Saturday, Nov. 28.
The next regular scheduled meeting of the Linton City Council will be at 7 p.m. on Monday, Dec. 8 at the city hall.
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If you really wanted to 'ease the economic pinch', then you wouldn't have raised the rates in the first place. Why don't you go ahead and raise the gas, water, sewage, and trash pick up while you are at it. Many people cannot afford their winter bills the way it is now, just go ahead and make it harder!
Thanks a lot!
linton-g-mom:
The mayor and council cannot be bothered by petty little things such as electric rate hikes, connection fees etc. The economic future, NO! the existence of Linton depends on using all available resources to draft a golf cart ordinance. Truly, this ordinance which effects so few, benefit so many. Just imagine little Timmy's face Christmas morning when he looks under the tree and sees a golf cart, no just any golf cart, but one that he can legally drive on the roads. Alas, he will not be able to drive because people can no longer afford their electric bill.
To those having problems with their utility bill - remember budget billing - I wouldn't be able to pay my utilities without it. I know what my payment is every month!
WheresDaMoney;
Budget billing is fine for people that do not pay there bills on time, or can not afford to pay all there utilities at once.
I own 3 homes in Linton that I rent furnished, I barely break even on the properties now.
As the utilities go up the rents will stays the
same you can not raise rent when most can not afford it.
The increase may make me abandon all three properties and sale them.
There are allot of other ways to cut cost I see waist in Linton all the time and if you say anything you are the bad guy so they would rather increase the rates then cut waist.
We really should be thankful that our rates are what they are. Try looking around. Most places are much higher. You can not fault the city for the cost of living. They have to maintain their lines too. We really could have it MUCH worse!
Oldcmw;
Read the story Linton rates are higher then Duke and the gas rate is 20% higher then other city's in this area.
So thankful for the rates as they are NO.
The whole problem is that people are mislead as to what the end cost is and the accrual rates are to the customer.
Ignorance is not an excuse to the facts, and as long as people are mis informed they will believe anything.
Trust in this country has gone out the window and honest business practices are a rare thing.
How is it possible to lose money on the electricity???? Please don't tell me " we're paying more for it than we sell it for" ....Perhaps someone should take a CLOSE look at how these revenues are being spent....then PUBLISH the findings in the newspaper. I'll bet you will find a surprise or two or three...