By a close margin, the Trenton City Council voted last night to accept a plan to increase electric rates for all customers, with the increase phased in over four years. The council also decided to provide a cash match on an application for a potential community development demolition grant.
The council was presented with an updated rate study report conducted by an independent company, Toth and Associates. The report is similar to what was presented last year, suggesting electric rate adjustments with small increases phased in over five years. However, the council voted it down in November.
The council voted four in favor and three opposed to increases of 2.7% this year, 2.6% in each of the next two years, and 2.5% in the fourth year (2027-28). Collectively, this amounts to a 10.8% increase over the four years, generating nearly $800,000 in revenue.
In a requested roll call vote, councilmen in favor of the increase were Glen Briggs, Calvin Brown, Marvin Harding, and John Dolan. Opposed were Lou Fisher, Tim Meinecke, and Dave Mlika. Duane Urich was absent from the meeting.
It was mentioned that if the city took no action again, the projected electric department operating margin would be a loss of $622,552. With the first year’s rate increase, the loss is anticipated to be nearly $212,000. A smaller loss could occur the next year before Trenton Municipal Utilities (TMU) could see a gain in the following two years of the phased-in increases.
The approved increases add $0.25 per month per customer for the base rate, which covers the cost of the electric meter. By the end of the fourth year, the residential base rate will be $19, an increase of $1. City Administrator Ron Urton stated that the increase involving the base rate and customer usage would amount to an average increase of about $2.50 per month for a residential customer.
Without an increase, Urton noted that upcoming projects for the overhead 2,400-volt line and vehicle purchases would drop TMU’s electric fund reserves to “close to the council-established minimum cash reserve of $2.5 million.”
The electric fund increases apply to residential, commercial, and large industrial customers, as well as street lighting.
Another topic that involved considerable discussion was the cash match from the city and property owners to accompany a demolition grant, should the city be successful with its application. Green Hills Regional Planning Commission will be paid $3,500 to write the grant. If the grant is approved, the planning commission would receive $22,000 for expenses and $10,000 for project administration. An ordinance was approved for the planning commission to provide professional services.
City Administrator Ron Urton mentioned that as many as 54 residential and one commercial property have been targeted for demolition. However, that doesn’t mean all will commit money to pay a portion of the costs. The cost is $500 for each residence and 20% of the demolition costs for commercial properties. An in-kind contribution can go toward the total project cost for employee time and the equipment used at demolition sites.
The council accepted a suggestion from Councilman Glen Briggs to commit $25,000 in cash, which is half of the $50,000 the city council allocates annually for the city’s cost-share demolition program.
Discussion was held with the city attorney regarding whether the city can donate to community efforts, such as raising money for fireworks. After reviewing statutes, Attorney Kenton Kinney advised the city not to do so. However, TMU is a separate enterprise that might be allowed to contribute. Councilman Briggs suggested that a policy be written to clarify that if the city can’t donate, neither can TMU.
The council accepted a bid from Poor Boy Tree Service of Fair Play, Missouri, for tree-trimming services up to the TMU budgeted $25,000.
The Howe Engineering Company was approved to make plans for drainage improvements. One location is at 13th and Main Streets for the new North Central Missouri College (NCMC) student center. $25,000 is to be paid to Howe. The City of Trenton staff will do the work. Another location involves new storm drainage along West 11th, Chestnut, and West 10th Streets. The cost paid to Howe is $56,000 for design and bidding services, plus construction administrative services. Administrator Urton indicated that the gravel parking lot across Main Street from city hall is to be asphalted in a cooperative arrangement with NCMC.
The council approved a minor subdivision for 18-23 East 9th Street to be divided into three parcels.
The council, by ordinance, reaffirmed the conflict of interest clause in city code. Clerk Cindy Simpson noted that the state ethics commission requires adoption every two years.
