Monticello Council Discusses Rates, Tap Fees and More

The Monticello City Council met last Thursday evening to further review the Electric Cities of Georgia (ECG) rate study which was presented recently by ECG officials, and it is now up to the city to determine what changes it wants to make in light of the results.

Steve Edwards, the city’s consultant on natural gas, said that there is a 100-year supply of gas, but that the market has put constraints on it, and providers are not currently drilling. The gas department, just like the electric department, helps fund the other departments. The rate study showed council members how to help each department stand on its own. The rate study did not include gas, which is why Mayor Gail Harrell invited Mr. Edwards.

Councilmembers made it clear they do not want to raise rates, especially for residential clients. However, something must be done to balance the revenues further. The department head were at the meeting, and Waymon Cody, who oversees water and sewer talked of the need to increase the price of taps for new customers. He said that price had not been raised in years. Ditto said electric superintendent Michael Boykin, who said he loses money initiating service. It may be made up, but it definitely costs the city money to bring on new customers.

The discussion centered around slow, steady increases where necessary, and how once tap fees are increased the additional users, and the large users, can help increase revenues, especially for water & sewer. They also talked about raising the base rate for services.

The discussion took place in a work session, so no action was taken, and there was no consensus on what to do next.

The city had discussed electricity in more detail previously, with emphasis on upgrades that need to be made. There was much talk of increasing rates for commercial and industrial customers. The first step however, based on the department heads reports, is that tap fees must be increased.

Although council members did not reach a consensus, it was on the agenda for Tuesday’s regular meeting (see related story).