City delays action on electric rate hikes

MORAN — Discussion on whether to raise electric rates reached no conclusion at Monday night’s meeting of Moran City Council.
The city purchases power from Westar and then distributes it to residents. Income over the years has built substantial reserves. For 2016’s budget, $144,000, including $115,000 for the general fund, will be transferred from those reserves.
However, the reserves are being eroded by revenue not keeping pace with expenses, by about $20,000 a year, Mayor Phillip Merkel pointed out. Also, Westar has filed for a rate increase, which won’t be decided until later this year, and could be made retroactive to the filing date.
Merkel argued in favor of paring the difference with income and outgo — including transfers which in large measure keep city government afloat. The 2016 budget proposes a levy of 24.543 mills to raise $36,680 in ad valorem taxes. Altogether, general fund expenditures are anticipated at $1.366 million.
Councilman Jim Mueller moved to increase the electric meter charge by $1 and add 2.5 cents to the per-kilowatt charge. On average that would have raised residents’ monthly bills by $25. The vote deadlocked at 2-2.
Bill Bigelow, who cast a negative vote, said he was concerned how such a pronounced increase would affect many of Moran’s residents.
Merkel’s observation: “The black (the fund’s reserves) is getting less and less.”
Councilmen decided to table the issue until their Aug. 3 meeting.
A public hearing for the 2016 budget, with an overall levy of 34.184 mills and about .7 of a mill more than this year’s 33.427, will be a part of the Aug. 3 meeting. Part of the levy increase came from a decrease in the city’s assessed valuation, which dropped from $1.5 million this year to $1.494 million for 2016.
Councilmen voted to publish new water rates, which will take effect on Aug. 1 and be reflected in September’s statements. The increase will mean about $7 a month more for most residents.
Chief of Police Shane Smith said armadillos and raccoons have taken a liking to Moran, to the point he has kept busy live-trapping the animals and transporting them for release in the countryside. One of the animals didn’t take kindly to being trapped, he said, and damaged the live trap so much it had to be replaced.